During the past month, the following costs were incurred in the three production departments and two service
Question:
During the past month, the following costs were incurred in the three production departments and two service departments of Postaic Company:
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 thisallocation.
Transcribed Image Text:
Using Department Supplying Department Administration Factory support Factory dministration Support 0.40 Fabrication Assembly Fin ishin 0.30 0.20 $312,500 $390,000 0.20 0.16 $67,000 nig 0.10 0.55 $59,500 0.10 t cost. $120,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 61% (13 reviews)
Set up the equations Total service department costs Direct costs of the service department Cost allo...View the full answer
Answered By
Fahmin Arakkal
Tutoring and Contributing expert question and answers to teachers and students.
Primarily oversees the Heat and Mass Transfer contents presented on websites and blogs.
Responsible for Creating, Editing, Updating all contents related Chemical Engineering in
latex language
4.40+
8+ Reviews
22+ Question Solved
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
Question Posted:
Students also viewed these Cost Accounting questions
-
Below is a modified balance sheet of the 1st Bank of Yuma. millions of dollars Assets Reserves Loans Short-term loans to businesses Real Estate Loans Federal Funds lent Securities Other Liabilities +...
-
The following costs were incurred in the most recent year: (a) Paid $20,000 to purchase a piece of equipment. In addition, paid $1,000 to have the equipment shipped to and installed in its final...
-
The following costs were incurred in the most recent year: (a) Paid $30,000 to purchase a piece of equipment. In addition, paid $1,000 to have the equipment shipped to and installed in its final...
-
4. Apple Inc. is a US-based technology company that plans to invest in a new research and development center in Europe and aims to raise the required funds as follows: < < - - A bond issue of...
-
The first audit of the books for Ringer Company was made for the year ended December 31, 2013. In reviewing the books, the auditor discovered that certain adjustments had been overlooked at the end...
-
If opening an economy up to trade always benefits both trading partners, why is free trade controversial?
-
Ethical considerations for padded budgets (Learning Objectives 1, 5) Residence Suites operates a regional hotel chain. Each hotel is operated by a man ager and an assistant manager/controller. Many...
-
Goldbloom Corp. is thinking about opening a soccer camp in southern California. To start the camp, Goldbloom would need to purchase land and build four soccer fields and a sleeping and dining...
-
Ivanhoe Company leases a building to Cullumber, Inc. on January 1 , 2 0 2 5 . The following facts pertain to the lease agreement. The lease term is 5 years, with equal annual rental payments of $ 4 ,...
-
Jerry Frost invested equipment in his business having a fair market value of $23,500. What are the effects on the fundamental accounting equation? Assets increase $23,500; liabilities, no effect;...
-
Refer to the data for Warren Ltd. in Exercise 11-22. Required Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.)
-
Refer to the data for University Printers in Exercise 11-24. Required Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only two...
-
What specific conduct of the paralegal was unethical? Make a list of what Martinez should have done when he hired the paralegal to have avoided such conduct.
-
The executives of ABC Inc. want to pursue ISO 9000 registration and let that suffice for the companys overall quality system. John Adams, ABCs vice president for quality, disagrees. Adams believes...
-
What is the difference between blockchain, Bitcoin, Ethereum, and Ripple (XRP)?
-
What is an example of a product innovation opportunity presented by Bluetooth, and NFC, Smart Bluetooth, or Beacons?
-
Which LPWA or LPWAN technology would you use if you frequently took travelers on remote tours and relied on IoT devices to improve the traveler experience?
-
Which type of LPWA or LPWAN is likely to be the most widely accepted and why?
-
For the penicillin reactor in Example 22.2, using repeated simulations, search for the optimal feed profile to maximize: \[0.025 P\{\tau\} V\{\tau\}-1.68 \tau-0.00085 \int_{0}^{\tau} F\{t\} d t\]...
-
B made an issue of 150,000 $1 ordinary shares at a premium of 20% the proceeds of which is received by cheque. What is the correct journal to record this? A. Bank Share capital Share premium B. Bank...
-
On each bet a gambler loses $1 with probability 0.7, loses $2 with probability 0.2, and wins $10 with probability 0.1. Estimate the probability that the gambler will be losing after 100 bets.
-
Is cost-of-goods sold an expense? Is cost-of-goods a product cost or a period cost?
-
The cost accountant for Angies Apparel has compiled the following information for last months operations. Administrative costs ..................................$ 42,000 Merchandise inventory, July...
-
Gilman?s Caf? is a popular restaurant in a local tourist town. Sarah Gilman, who opened the restaurant five years ago, has seen it grow steadily.Currently, Gilman?s is only open for dinner, but many...
-
Lightfoot Inc., a software development firm, has stock outstanding as follows: 3 0 , 0 0 0 shares of cumulative preferred 4 % stock, $ 2 5 par, and 3 8 , 0 0 0 shares of $ 1 0 0 par common. During...
-
The following information relates to the debt imvestments of Ayayai Inc. during a recent year: On February 1 , the company purchased Gibbons Corp. 1 0 % bonds with a face value of $ 2 2 2 , 0 0 0 at...
-
Smith Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Smith allocates overhead based on yards of direct materials. The company's performance report...
Study smarter with the SolutionInn App