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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
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 | Factory Support | Fabrication | Assembly | Finishing | |||||||||||
Administration | ? | 0.40 | 0.20 | 0.10 | 0.30 | |||||||||||
Factory support | 0.10 | ? | 0.10 | 0.20 | 0.60 | |||||||||||
Direct cost | $ | 570,000 | $ | 1,295,000 | $ | 1,650,000 | $ | 277,000 | $ | 247,000 | ||||||
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.)
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