Question
Wayne Casting, Inc., produces a product made form a metal alloy. Wayne buys the alloy from two different suppliers, Chillicothe Metals and Ames Supply, in
Wayne Casting, Inc., produces a product made form a metal alloy. Wayne buys the alloy from two different suppliers, Chillicothe Metals and Ames Supply, in approximately equal amounts because of the supply constraints at both vendors. The material from Chillicothe is less expensive to buy, but more difficult to use, resulting in greater waste. The metal ally is highly toxic and any waste requires costly handling to avoid environmental accidents. Last year the cost of handling the waste totaled $290,000. Additional data from last year's operations are shown below
Chillicothe Metals | Ames Supply | |
Amount of material purchased (tons) | 173 | 127 |
Amount of waste (tons) | 12.90 | 2.70 |
Cost of material purchased | $688,000 | $912,000 |
Required:
a.Allocate the cost of wast handling to the wast handling to the two suppliers based on :(do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)
Chillicothe Metals | Ames Supply | |
1.Amount of material purchased | ||
2.Amount of waste | ||
3.Cost of material purchased | $124,700 | $165,300 |
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