During the past month, the following costs were incurred in the three production departments and two...
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During the past month, the following costs were incurred in the three production departments and two service departments of Kim & Co.: Using Department Supplying Department Administration Administration Factory Support Fabrication Assembly Finishing 0.10 0.40 0.30 0.20 0.15 0.55 Factory support Direct cost 0.15 $680,000 0.15 $1,760,000 $288,000 $1,350,000 $258,000 Required: Allocate service department costs to Fabrication, Assembly, and Finishing using the reciprocal method, and determine the total costs of Fabrication, Assembly, and Finishing after this allocation. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.) Answer is not complete. Cost Allocation To: From: Administration Factory Support Fabrication Assembly Finishing Service department costs S 680,000 Administration (938,830) Factory support 258,830 Total allocations Direct costs Total costs $ 1,350,000 375,532 (1,725,532) 0 1,760,000 $ 281,649 ( 258,830 $ 2,300,479 $ 2,300,479 $ 288,000 $ 187,766 ( 258.830 734,596 S 734,596 $ 258,000 93,883 949,043 1,300,926 1,300,926 During the past month, the following costs were incurred in the three production departments and two service departments of Kim & Co.: Using Department Supplying Department Administration Administration Factory Support Fabrication Assembly Finishing 0.10 0.40 0.30 0.20 0.15 0.55 Factory support Direct cost 0.15 $680,000 0.15 $1,760,000 $288,000 $1,350,000 $258,000 Required: Allocate service department costs to Fabrication, Assembly, and Finishing using the reciprocal method, and determine the total costs of Fabrication, Assembly, and Finishing after this allocation. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.) Answer is not complete. Cost Allocation To: From: Administration Factory Support Fabrication Assembly Finishing Service department costs S 680,000 Administration (938,830) Factory support 258,830 Total allocations Direct costs Total costs $ 1,350,000 375,532 (1,725,532) 0 1,760,000 $ 281,649 ( 258,830 $ 2,300,479 $ 2,300,479 $ 288,000 $ 187,766 ( 258.830 734,596 S 734,596 $ 258,000 93,883 949,043 1,300,926 1,300,926
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Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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