Osaka Electronics, headquartered in Japan, produces consumer durables. It has two departments— component manufacturing and assembling. For the April–June quarter, 2020, the following costs were incurred by the company as a whole: direct material ¥800,000; direct labor ¥180,000; indirect production ¥80,000. The total costs were ¥1,060,000. 

The component manufacturing department incurred 60% of direct-material costs but only 20% of direct-labor costs. Indirect production costs amounted to ¥20,000 in the component manufacturing department and ¥60,000 in the assembling department. 

The company manufactured three products using the following proportions of direct materials and direct labor in the two departments:

The indirect production costs incurred by each department were allocated to products in proportion to their direct-labor costs of products within the departments. 

1. Compute the total costs incurred by the component manufacturing department and added by the assembling department. 

2. Compute the total costs of each product that would be shown as finished-goods inventory if all the products were transferred to finished stock after assembly.

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Products Refrigerators Air conditioners Washing machines Total for component manufacturing department Refrigerators Air conditioners Washing machines Total for assembling department Direct Materials 40% 40% 20% 100% 50% 40% 10% 100% Direct Labor 40% 20% 40% 100% 40% 40% 20% 100%