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Analyze William$$s Ball & Jersey Shop

William$$s Ball & Jersey Shop is a small athletic products company currently trying to determine cost allocations. Accurate costing numbers are important but not crucial; no employee bonuses depend on them, and the company wants to keep the cost allocation process simple and cost$-$effective.

The company produces and sells footballs, basketballs, baseballs, and jerseys for each of those sports. The jerseys of each sport go through a joint production process before they are dyed, embroidered, and printed with the appropriate colors and logos for whatever team they are to represent. William Lind, the owner, believes an adjustment might need to be made to the company$$s current physical units method of joint cost allocation. Presently, youth$-$ and adult$-$size jerseys go through the same joint production process, but the adult$-$size jerseys require more material, cutting, and sewing than youth$-$size jerseys. William is also considering the addition of a toddler$-$size jersey to his baseball jersey joint product line. The market value at the split$-$off point of the toddler$-$size jersey is expected to be barely less than its share of the joint production cost $($based on the company$$s current joint cost allocation method$),$ but it will only incur a $$3$ per jersey additional production process cost. a$.$ Identify the cost allocation method that suits the given situation for the support department cost. b$.$ Identify the joint cost allocation method that could improve the joint cost allocation of the company. c$.$ Identify additional information that the company should have before starting the production of toddler$-$size jerseys. d$.$ Identify whether the toddler$-$size jerseys are profitable if the market value at the split$-$off point is $$10$ and the market price after further process is $$17\mathrm{.}99.$ Support Department $1$ cost driver $2218$

Support Department $2$ cost driver $2,2801,720$

What percentage of each support department$$s cost should be allocated to each production department using the direct method?

Production

Department $1$ Production

Department $2$

Support Department $1$ cost allocation fill in the blank $5$

$\%$ fill in the blank $6$

$\%$

Support Department $2$ cost allocation