Trans-Pacific Lumber runs a mill in the Northwest that produces two grades of lumber. A and B and a by product, sawdust. The company chooses to allocate the costs on the basis of the physical quantities method Last month, it processed 131,000 logs at a total cost of $356,000. The output of the process consisted of 34,600 units of grade A, 51,600 units of grade B, and 15.600 units of sawdust. The sawdust can be sold for $11.200. This is considered to be its net realizable value, which is deducted from the processing costs of the main products Required: What share of the Joint costs should be assigned to grade A ond grade B? (Do not round intermediate calculations) Joint costs Product Grade A Orade Midland Resources has two production departments (Fabrication and Assembly) and three service departments (Engineering, Administration, and Maintenance). During July, the following costs and service department usage ratios were recorded Supplying Using Department Department Engineering Administration Maintenance Fabrication Engineering Assembly 60% 20% 20% Administration 15% SON 25% Maintenance 20% 20% 60% Direct cost $58,890 $329,000 550,000 $270,000 $90,000 @ 105 a Required: Allocate the service department costs to the two operating departments using the reciprocal method. (Do not round intermediate calculations.) Allocated to: Fabrication Costs Assembly Engineering Adinistration Maintenance Total Trans-Pacific Lumber runs a mill in the Northwest that produces two grades of lumber. A and B and a by product, sawdust. The company chooses to allocate the costs on the basis of the physical quantities method Last month, it processed 131,000 logs at a total cost of $356,000. The output of the process consisted of 34,600 units of grade A, 51,600 units of grade B, and 15.600 units of sawdust. The sawdust can be sold for $11.200. This is considered to be its net realizable value, which is deducted from the processing costs of the main products Required: What share of the Joint costs should be assigned to grade A ond grade B? (Do not round intermediate calculations) Joint costs Product Grade A Orade Midland Resources has two production departments (Fabrication and Assembly) and three service departments (Engineering, Administration, and Maintenance). During July, the following costs and service department usage ratios were recorded Supplying Using Department Department Engineering Administration Maintenance Fabrication Engineering Assembly 60% 20% 20% Administration 15% SON 25% Maintenance 20% 20% 60% Direct cost $58,890 $329,000 550,000 $270,000 $90,000 @ 105 a Required: Allocate the service department costs to the two operating departments using the reciprocal method. (Do not round intermediate calculations.) Allocated to: Fabrication Costs Assembly Engineering Adinistration Maintenance Total
