Question: 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
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 S3 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 from Services Provided to S1 S2 S3 P1 P2 S1 10 20 28 42 S2 5 15 52 28 S3 7 3 27 63 The direct operating costs of the service departments are as follows S1 150000 S2 80000 S3 106000 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 Service Departments Producing Departments S1 S2 S3 P1 P2 Total costs Answer 1 Answer 2 Answer 3 Answer 4 Answer 5
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