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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.: Supplying Department Administration. Factory support Direct cost Administration 0.10 $ 620,000 Using Department Factory Support Fabrication Assembly 0.40 0.20 0.30 0.30 $1,700,000 $282,000 0.10 $1,320,000 Finishing 0.10 0.50 $252,000 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.)

During the past month, the following costs were incurred in the three production departments and two service departments of Kim & Co.: Supplying Department Administration. Factory support Direct cost Administration 0.10 $ 620,000 Using Department Factory Support Fabrication Assembly 0.40 0.20 0.30 0.30 $1,700,000 $282,000 0.10 $1,320,000 Finishing 0.10 0.50 $252,000 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.)

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter5: Process Cost Accounting—general Procedures
Section: Chapter Questions
Problem 9E: AAA Appliances Inc. has two production departments. The nature of the process is such that no units...
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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.: Supplying Department Administration. Factory support Direct cost Administration 0.10 $ 620,000 Using Department Factory Support Fabrication 0.40 $1,320,000 0.30 0.30 $1,700,000 Assembly 0.20 0.10 $282,000 Finishing 0.10 0.50 $252,000 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.) 4
Transcribed Image Text:During the past month, the following costs were incurred in the three production departments and two service departments of Kim & Co.: Supplying Department Administration. Factory support Direct cost Administration 0.10 $ 620,000 Using Department Factory Support Fabrication 0.40 $1,320,000 0.30 0.30 $1,700,000 Assembly 0.20 0.10 $282,000 Finishing 0.10 0.50 $252,000 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.) 4
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