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Support Department Cost Allocation-- Reciprocal Services Method Blue Africa Inc. produces Laptops and desktop computers. The company's production activities mainly occur in what the company calls its Laser and Forming departments. The Cafeteria and Security departments support the company's production activities and allocate costs based on the number of employees and square feet, respectively. The total cost of the Security Department is $257,000. The total cost of the Cafeteria Department is $534,000 The number of employees and the square footage in each department are as follows: Employees Square Feet Security Department 10 Cafeteria Department 18 2,400 Laser Department 40 2,400 Forming Department 3,200 using the reciprocal services method of support department cost allocation, determine the total costs from the security Department that should be allocated to the Cafeteria Department and to each of the production departments, Cafeteria Laser Forming Department Department Department 600 Security Department cost allocation Support department cost allocation-reciprocal services method Davis Snowflake & co produces Christmas stockings in its Cutting and Sewing departments. The Maintenance and Security departments support the production of the stockings Costs from the Maintenance Department are allocated based on machine hours, and costs from the security Department are allocated based on asset value. Information about each department is provided in the following table: Maintenance Security Cutting Sewing Department Department Department Department Machine hours 800 2,000 8.400 9,500 Asset value $2,000 $1,430 $2,000 56,000 Department cost $34,560 $15,360 $67,000 $79,000 Determine the total cost of each production department after allocating all support department costs to the production departments using the reciprocal services method Cutting Sewing Department Department Production departments total costs Joint cost allocation -- net realizable value method Nature's Garden Inc. produces wood chips, wood pulp, and mulch. These products are produced through harvesting trees and sending the logs through a wood chipper machine. One batch of logs produces 20,760 cubie yards of wood chips, 14,950 cubic Yards of much and 9,586 cubic Yards of wood palt. The joint production process costs a total of $31,000 per batch. After the split off point, wood chips are immediately sold for 127 per cubic yard while wood pulp and much are processed further, the market value of the wood pulp and mulch at the solit off point is estimated to be $20 and $30 per cubic yard, respectively. The additional production process of the wood pulp costs $5 per cubic Yard, after which it is sold for 528 per cubic yard. The additional production process of the much costs $2 per cubic Yard, after which it is said for $38 per cubic Yard. This information has been collected in the Microsoft Excel Ordine file. Open the spreadshot, perform the required analyou, and input your answers in the question below. Open spreadsheet Allocate the joint costs of production to each product using the net realizable value method. Do not round intermediate calculations, Round your answer to the nearest dollar Joint Product Allocation wood chios Wood pulo Mulch TOL
