FOUR Amin manufacturing Co.Ltd provided the following budget information for its four departments for the coming year: Departments: Machining Finishing Canteen Cost item: Sh"000" Sh000" Sh"000" Repairs Sh"000" Total Sh"000 Allocated overheads 2,000 1,000 200 300 3,500 Factory rent 1,200 Machine depreciation 600 Staff welfare 420 Further information related to the above are as given below: Departments: Machining Finishing Canteen Repairs Total Floor area in 1,000 2,000 800 200 4,000 sq.metres Machine 3,000 1,500 200 300 5000 values"000" Number of employees 100 500 40 60 700 The two service departments, the canteen and the repairs department, provide reciprocal services for each other and for the two production departments. The machining department is machine intensive while the finishing department is labour intensive. Other information is given below. Departments: Canteen charged to 30% Repairs charged to Machining Finishing Canteen 50% Repairs 20% 70% 20% 10% Required: Total 100% 100% a. Apportion the common overhead costs among the four departments and indicate the respective basis of apportionment b. Using the algebraic method, apportion the overheads of the two service departments to the production (7 marks) departments (all allocations are rounded up to the nearest thousand shillings). e. Describe one key feature of FIFO, LIFO and Weighted average methods to inventory valuation (7 marks) (6 marks) (TOTAL 20 MARKS)