Business Assignment- Cost Accounting

Business Assignment- Cost Accounting

1)Jackson Company has two departments S1 and S2 and two producing department P1 and P2. Estimated direct costs and percentages of services used by other departments are as follows:

Required:

1. Prepare a schedule allocating the support department costs to the producing departments using the direct allocation method. What are the total costs in the producing departments after the allocation to the nearest dollar?
2. Prepare a schedule allocating the support department costs to the producing departments using the sequential (step) allocation method. What are the total costs in the producing departments after the allocation to the nearest dollar?
3. Prepare a schedule allocating the support department costs to the producing departments using the reciprocal allocation method. What are the total costs in the producing department after the allocation to the nearest dollar?

2)

Yamaha Industries for the month ending December 31, 2013

Sale                                                                 $ 450,000

Cost of goods sold                                                    329,000

Net income                                                                 22,000

Beg inventories:

Direct Material                                                          70,000

WIP                                                                             28,000

Finish goods                                                              90,000

Ending direct materials is 10% smaller than beg direct materials. Ending WIP is 75% of the beg WIP. Ending finished goods increased by $ 15,000 during the year. Prime costs and conversion costs are 60% and 80% of total manufacturing costs added, respectively.  No income taxes.

Required:

1. a)Prepare a statement of cost of goods manufactured, and a gross profit income statement for December.
2. b)Calculate prime costs and conversion costs.