Cordner Corporation has two production Departments: P1 and P2 and two service departments: S1 and S2. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows: Proportion of Services Used by:
Department Direct costs S1 S2 P1 P2
S1 $ 60,000 0.70 0.10 0.20
S2 $ 100,000 0.20 0.30 0.50
P1 $ 160,000
P2 $ 140,000
Under the direct-method of cost allocation, the amount of S1 costs allocated to P1 would be:
A. $20,000.
B. $6,000.
C. $30,000.
D. $62,500.

Match the terms with their correct definition. terms: 1. accounts receivable 2. other receivables 3 debtor 4. notes receivable 5. maturity date 6. creditor definitions: a. the party to a credit transaction who takes on an obligation/payable. b. the party who receives a receivable and will collect cash in the future. c. a written promise to pay a specified amount of money at a particular future date. d. the date when the note receivable is due. e. a miscellaneous category that includes any other type of receivable where there is a right to receive cash in the future. f. the right to receive cash in the future from customers for goods sold or for services performed.