Moccasin Corp $\text { Total department costs for the support and producing departments are as follows: }$

question 115

Essay

Moccasin Corp. has two support departments, A and B and two producing departments, P1 and P2. The distribution of services by the support departments is as follows: $\begin{array}{lllll}&&\text { Services Provided to }\\\text { Services Frovided from }&A&B&P1&P2\\A & - & 20 \% & 45 \% & 35 \% \\B & 20 \% & - & 30 \% & 50 \%\end{array}$
$\text { Total department costs for the support and producing departments are as follows: }$

$\begin{array}{lr}A & \$ 90,000 \\\mathrm{~B} & 150,000 \\\mathrm{P} 1 & 850,000 \\\mathrm{P} 2 & 700,000\end{array}$
Required:
Find the amount of total costs for P1 and P2 using the reciprocal method.

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Definitions:

End-of-period Spreadsheet

A financial document summarizing a company's financial data at the end of an accounting period, including assets, liabilities, and equity.

Income Statement

The income statement is a financial document that shows a company's revenues, expenses, and net income over a specific period.

Statement of Owner's Equity

A financial statement that outlines the changes in the equity of a company or individual over a specific period, detailing contributions, withdrawals, and the overall profit or loss.

End-of-period Spreadsheet

A tool used in accounting to compile all account balances and adjustments at the end of a period in order to prepare financial statements.