The Kyoto Manufacturing Company has two departments, machining and finishing. For a given period, the following costs were incurred by the company as a whole: direct material, ¥200,000; direct labour, ¥75,000; and indirect production, ¥80,000. The grand total was ¥355,000.

The machining department incurred 70 per cent of the direct-material costs, but only 33⅓ per cent of the direct-labour costs. As is commonplace, indirect production costs incurred by each department were allocated to products in proportion to the direct-labour costs of products within the departments. Three products were produced.

The indirect production costs incurred by the machining and finishing departments and allocated to all products therein amounted to machining, ¥38,000 and finishing, ¥42,000.

1. Compute the total costs incurred by the machining department and added by the finishing 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 on completion. 

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Product Sigma Chi Delta Total for the machining department Sigma Chi Delta Total added by finishing department Direct material 40% 30% 30% 100% 33%3% 33½% 33%3% 100% Direct labour 30% 30% 40% 100% 40% 40% 20% 100%