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THE ANSWER IS NOT $162,740 and $158,260 or $89,000 and $71,500 Interdepartment Services: Direct Method Wilhelm Manufacturing Company has five operating departments, two of which
THE ANSWER IS NOT $162,740 and $158,260
or $89,000 and $71,500
Interdepartment Services: Direct Method Wilhelm Manufacturing Company has five operating departments, two of which are producing departments (P1 and P2) and three of which are service departments (S1, S2, and 53). All costs of the service departments are allocated to the producing departments. The following table shows the distribution of services from the service departments. Services provided Services Provided to from S1 S2 S3 P1 P2 -- 5% 25% 50% 20% S2 10% -- 5 45 40 53 15 5 -- 20 60 S1 The direct operating costs of the service departments are as follows: 51 $ 98,000 S2 187,000 53 36,000 Using the step method, prepare a schedule for Wilhelm Manufacturing Company allocating the service department costs to the producing departments. (Round calculations to the nearest dollar. Do not round until your final answers.) Service Departments Producing Departments S1 S2 S3 P1 P2 Total costs $ 0 $ 0 $ 0 $ 89,000 * $ 71,500 xStep by Step Solution
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