View Assessment x Dashboard X Module 6 (Ch07) HW Problems X + @ File | /Users/mykaylawhite/Downloads/Module%206%20(Ch07)%20HW%20Problems%20(1).pdf Module 6 (Ch07) HW Problems (1).pdf 1 / 2 100% + HW07 Problems Q1. CareMark Insurance Company has two service lines, health insurance and auto insurance. The two product lines are served by three operating departments which are necessary for providing the two types of services: claims processing, administration, and sales. These three operating departments are supported by two departments: 1 information technology and facilities. The support provided by information technology and facilities to the other departments is shown below: Support Departments Operating Departments Info. Tech Facilities Claims Proc. Administration Sales Information Technology 30% 30% 20% 20% Facilities 10% 20% 40% 30% The total costs incurred in the five departments are: Information Technologies $600,000 Facilities $1,800,000 2 Claims Processing $345,000 Administration $875,000 Sales $555,000 Total Costs $4,175,000 Required Allocate the $4,175,000 total departmental costs to the three operating departments using (a) the direct method, (b) the step method (for both information technology and facilities going first in the allocation), and (c) the reciprocal method. Q2 Choi Company manufactures two skin care lotions, Smooth Skin and Silken Skin, from a joint process. The joint costs incurred are $420,000 for a standard production run that generates 180,000 gallons of Smooth Skin and 120,000 gallons of Silken Skin. Smooth Skin sells for $2.40 per gallon, while Silken Skin sells for $3.90 per gallon. Module 6 HW Fo....xIsx Module 6 (Ch07)....pdf Module 6 (Ch07)....pdf Show All Xa View Assessment I:. X l u Dashboard X e Module6(Ch07) HW Problenr x + C' (D File l /Users/mykaylawhite/Downloads/Module%206%20(Ch07)%20HW%20Problems%20(1).pdf Module 6 (Ch07) HW Problems (1).pdf Module 6 HW Fo.l..x|sx A Module 6 (Ch07)..\"pdf A Required 1. 2. Assuming that both products are sold at the split-off point, how much of the joint cost of each production run is allocated to Smooth Skin on the sales value basis? If not additional costs are incurred after the splitoff point, how much of the joint cost of each production run is allocated to Silken Skin on the physical measure method basis? . If additional processing costs beyond the split-off point are $1.40 per gallon for Smooth Skin and $0.90 per gallon for Silken Skin, how much of the joint cost of each production run is allocated to Silken Skin on a net realizable value basis? . If additional processing costs beyond the split-off point are $1.40 per gallon for Smooth Skin and $0.90 per gallon for Silken Skin, how much of the join cost of each production run is allocated to Smooth Skin on a physical measure method basis? Module 6 (Ch07).\".pdf A Show All X Excel File Edit View Insert Format Tools Data Window Help G 95% . ~ Q 8 . Thu Sep 29 10 47 44 AM AutoSave OFF n A E ? C ... 3 Module 6 HW Formats (1) Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments Arial v 14 AA = Wrap Text v General Ex AY- O. Paste BIUVV DAV E Merge & Center v $ ~ % " Conditional Format Cell Insert Delete Format Sort & Find & Analyze Formatting as Table Styles Filter Select Data M16 4 x v fx C D E G H K L M N 0 P Q R s T U V w Name: Class The Direct Method Support Departments Operating Departments Info Tech Facilities Claims Process Operations Sales Total DEPARTMENTAL ALLOCATION BASES Info Tech percent Facilities percent 10 FIRST PHASE: Trace Direct Costs and Perform Initial Allocation of Indirect Costs 12 Totals for All Departments 14 SECOND PHASE: Reallocate Service Department Costs to Operating Departments: 15 The Direct Method 16 |Info Tech Service % to producing department Allocation % per the direct method Allocation amount 20 Facilities Service % to producing departments Allocation by service share % Allocation amount 3 Totals for Operating Departments 6 The Step Method (Info Tech First) Support Departments Operating Departments Info Technology Facilities Claims Process Operations Sales Total 28 DEPARTMENTAL ALLOCATION BASES 29 Info Technolog percent Facilities percer FIRST PHASE: Trace Direct Costs and Perform Initial Allocation of Indirect Costs Totals for All Departments SECOND PHASE: Reallocate Service Department Costs to Operating Departments: The Step Method 37 Info Technolog Service % to producing departments Allocation amount 39 Facilities Service % to producing departments 40 Allocation by service share % Allocation amount 42 Totals for Operating Departments Q1 Q2 + Ready 12 Accessibility: Good to go + 70% 4295 SEP 11131 29 X P- ? AExcel File Edit View Insert Format Tools Data Window Help G 95% . ~ Q 8 . Thu Sep 29 10 47 50 AM AutoSave OFF n A E ? C ... 3 Module 6 HW Formats (1) Q Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments Arial v 14 AA =1 Wrap Text v General Ex AY- O. Paste BIUVV DAV EE Merge & Center v $ ~ % " Conditional Format Cell Insert Delete Format Sort & Find & Analyze Formatting as Table Styles Filter Select Data M16 X V fx E G L M N 0 P Q R s T U V w 26 The Step Method (Info Tech First) Support Departments Operating Departments 27 Info Technology Facilities Claims Process Operations Sales Total 28 DEPARTMENTAL ALLOCATION BASES 29 Into Technolog percent 30 Facilities percent 31 FIRST PHASE: Trace Direct Costs and Perform Initial Allocation of Indirect Costs Totals for All Departments 35 SECOND PHASE: Reallocate Service Department Costs to Operating Departments: 36 The Step Method 37 Info Technolog Service % to producing departments Allocation amount 39 Facilities Service % to producing departments 40 Allocation by service share % Allocation amount 42 Totals for Operating Departments 44 The Step Method (Facilities First) Support Departments Operating Departments Info Technology Facilities Claims Process Operations Sales Total 46 DEPARTMENTAL ALLOCATION BASES 47 Info Technolog percen 48 Facilities percent 49 FIRST PHASE: Trace Direct Costs and Perform Initial Allocation of Indirect Costs Totals for All Departments SECOND PHASE: Reallocate Service Department Costs to Opeerating Departments: 54 The Step Method 55 Info Technolog Service % to producing depts. Allocation amount Facilities Service % to producing departments Allocation by service share % Allocation amount 60 Totals for Operating Department 3 The Reciprocal Method Support Departments Operating Departments Info Technology Facilities Claims Process Operations Sales Total 65 DEPARTMENTAL ALLOCATION BASES Q1 Q2 + Ready 12 Accessibility: Good to go + 70% 4295 SEP W tv 4 X P- ? 11131 29 AExcel File Edit View Insert Format Tools Data Window Help G 95% . ~ Q 8 . Thu Sep 29 10 47 54 AM AutoSave OFF n A E ? C ... 3 Module 6 HW Formats (1) Q Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments Arial v 14 AA =1 Wrap Text General Ex AY- O. Paste BIUVV DAV E Merge & Center v $ ~ % " Conditional Format Cell Insert Delete Format Sort & Find & Analyze Formatting as Table Styles Filter Select Data M16 X V fx C D E G H K L M N 0 P Q R s T U V w 63 The Reciprocal Method Support Departments Operating Departments Info Technology Facilities Claims Process Operations Sales Total 65 DEPARTMENTAL ALLOCATION BASES 66 Info Technolog percent 67 Facilities percent FIRST PHASE: Trace Direct Costs and Perform Initial Allocation of Indirect Costs 71 Totals for All Departments SECOND PHASE: Reallocate Service Department Costs to Operating Departments: 4 First: Solve the simultaneous equations for service 1 and service 2 75 Amount allocated from info systems 76 Amount allocated from facilities Second: Allocate to Producing Departments 78 Info Technolog Service % to producing depts. 79 Allocation amount 80 Facilities Service % to producing departments Allocation amount Totals for Operating Departments Q1 Q2 + Ready { Accessibility: Good to go 7070 SEP 29 "tv X P- 14194 E AExcel File Edit View Insert Format Tools Data Window Help G 95% . ~ Q 8 . Thu Sep 29 10 48 18 AM n A E ? C ... 3 Module 6 HW Formats (1) Q AutoSave OFF Home Insert Draw Page Layout Formulas Data Review View Tell me LE Share Comments Arial v 12 AA =1 ab Wrap Text v General Ex AP- O. $ ~ % " Conditional Format Cell Insert Delete Format Sort & Find & Analyze Paste E Merge & Center v Formatting as Table Styles Filter Select Data K9 fx C D E F G H J K M N 0 P Q R S T U V W A B Name: Class Part 1: W N Sold at the Split-Off Point Smooth Silken Total Production Sales Price Sales Value of Production Percentage of Total Sales 10 Allocated Joint Cost 12 14 15 10 17 Part 2: 18 Physical Units Method 19 Smooth Silken Total 20 Units of Production 21 Percentage of Total 22 23 Allocated Joint Cost 24 26 27 29 Part 3: 30 d at the Split-Off Po 31 Smooth Silken Total 32 Production 33 Sales Price 34 Sales Value of Production 35 Individual separable costs 36 Less: Separable Costs 37 alizable Value 38 Q1 Q2 + + 100% Ready { Accessibility: Good to go 4295 SEP X P- ? 11131 29 A95% . ~ Q 2 . Thu Sep 29 10:48:23 AM Excel File Edit View Insert Format Tools Data Window Help G AutoSave OFF n A E ? C ... 3 Module 6 HW Formats (1) Q Data Review View Tell me LE Share Comments Home Insert Draw Page Layout Formulas Arial v 12 AA = =1 Wrap Text v General Ex AP- O. Conditional Format Cell Insert Delete Format Sort & Find & Analyze Paste BIUVV DAV E E = Merge & Center v $ ~ % " Formatting as Table Styles Filter Select Data K9 fx B C D E F G H J K L M N 0 P Q R S T U V W 29 Part 3: 30 Sold at the Split-Off Point 31 Smooth Silken Total 32 Production 33 Sales Price 34 Sales Value of Production 35 Individual separable costs 36 Less: Separable Costs New Realizable Value 38 39 Percentage of Total NRV 40 41 Allocated Joint Cost 42 44 45 46 Part 4: 47 Physical Units Method 48 Smooth Silken Total 49 Units of Production 50 Percentage of Total 51 52 Allocated Joint Cost 53 54 55 56 57 58 59 60 4 Q1 Q2 + Ready { Accessibility: Good to go SEP 29 W "tv X P- 14194 4