Please do not give solution in image format thanku Logan Products has two production departments-assembly and finishing. These are supported by two service departments-sourcing(purchasing and handling of materials and human resources) and operations (work scheduling, supervision, and inspection). Logan hasthe following labor hours devoted by each of the service departments to the other departments.DepartmentsSourcingOperationsAssemblyFinishingTotalSourcingOperationsThe costs incurred in the plant are as follows:Sourcinga. Direct MethodAssemblyFinishingb Stop Method10,000AssemblyFinishingTotal Labor Hours Used by DepartmentsAssembly40,00060,000AssemblyFinishingc Reciprocal MethodOperations20,000DepartmentalCostsRequired:1. What are the costs allocated to the two production departments using (a) the direct method, (b) the step method, when the sourcingdepartment that provides the greatest percentage of services to other service departments goes first, and (c) the reciprocal method?2. What are the total costs in the production departments after allocation?(For all requirements, do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)$ 198,000260,000432,000277,000$1,167,000Total ServiceDepartment CostAllocatedFinishing60,00050,000Total ProductionCost

The costs of production departments is allocated to the service departments using the various…

Logan Products has two production departments-assembly and finishing. These are supported by two service departments-sourcing (purchasing and handling of materials and human resources) and operations (work scheduling, supervision, and inspection). Logan has the following labor hours devoted by each of the service departments to the other departments. Sourcing 10,000 Departments Sourcing Operations Assembly Finishing Total Total Labor Hours Used by Departments Operations 20,000 Assembly 40,000 60,000 Sourcing Operations The costs incurred in the plant are as follows: Departmental Costs $ 198,000 260,000 432,000 277,000 $1,167,000 Finishing 60,000 50,000 Required: 1. What are the costs allocated to the two production departments using (a) the direct method, (b) the step method, when the sourcing department that provides the greatest percentage of services to other service departments goes first, and (c) the reciprocal method? 2. What are the total costs in the production departments after allocation? (For all requirements, do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)

Logan Products has two production departments-assembly and finishing. These are supported by two service departments-sourcing (purchasing and handling of materials and human resources) and operations (work scheduling, supervision, and inspection). Logan has the following labor hours devoted by each of the service departments to the other departments. Sourcing 10,000 Departments Sourcing Operations Assembly Finishing Total Total Labor Hours Used by Departments Operations 20,000 Assembly 40,000 60,000 Sourcing Operations The costs incurred in the plant are as follows: Departmental Costs $ 198,000 260,000 432,000 277,000 $1,167,000 Finishing 60,000 50,000 Required: 1. What are the costs allocated to the two production departments using (a) the direct method, (b) the step method, when the sourcing department that provides the greatest percentage of services to other service departments goes first, and (c) the reciprocal method? 2. What are the total costs in the production departments after allocation? (For all requirements, do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter5: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 5E: Crystal Scarves Co. produces winter scarves. The scarves are produced in the Cutting and Sewing...

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