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Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of
Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow: Proportion of Services used by Direct Department Costs Maintenance Cafeteria Machining Assembly Machining $185,000 Assembly 74,000 Maintenance 48, ee 8.4 Cafeteria 40,000 0.8 0.1 @.1 Required: Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.) (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.) From: Service department costs Maintenance Cafeteria Total Answer is complete but not entirely correct. Cost Allocation To: Maintenance Cafeteria Machining Assembly s 105,000 Xs 74,000 s OS 0 (216,053) 64,816 86,421 84.816 111,053 (138,816) 13,882 13,8823 S 0 S 0 S 100,303 S 78,698 Deming & Sons manufactures four grades of lubricant, W-10, W-20, W-30, and W-40, from a joint process. Additional information follows: Units Product Produced W-10 67,2ee W-20 48, eee W-30 38, 4ee W-40 38,4ee 192, eee If Processed Further Sales Value at Split-Off Additional Costs Sales Values $ 400,000 $ 43,200 $ 438,000 344,000 34,400 480, eee 232,000 23, 20e 288, eee 176, eee 14, 4ee 192, eee $1,152,000 $115, 200 $1,318,eee Required: Assuming that total joint costs of $460,800 were allocated using the sales value at split-off (net realizable value method), what joint costs were allocated to each product? (Do not round intermediate calculations.) Answer is complete but not entirely correct. Joint Product NRV at Split Off Costs Allocated W-10 s 394,800 $ $ 151,250 W-20 365 600 X 140,064 W-30 S 284.800 $ 101,446 W-40 S 177,600 S 68,040 on on
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