Question
Required information Skip to question [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments
Required information
Skip to question
[The following information applies to the questions displayed below.]
The following information is departmental cost allocation with two service departments and two production departments.
| Department | Cost | Percentage Service Provided to | |||
|---|---|---|---|---|---|
| S1 | S2 | P1 | P2 | ||
| Service 1 (S1) | $ 50,000 | 0% | 20% | 40% | 40% |
| Service 2 (S2) | 40,000 | 20 | 0 | 20 | 60 |
| Production 1 (P1) | 300,000 | ||||
| Production 2 (P2) | 350,000 | ||||
What is the total cost in P1 and P2 and what is the amount of service department cost allocated to P1 and P2 using the step method with S1 going first?
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CIA Part 1 Essentials Of Internal Auditing 2022
Authors: MUHAMMAD ZAIN
1st Edition
B09PHFC28N, 979-8794951356
