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Wayne Casting, Inc., produces a product made from a metal alloy. Wayne buys the alloy from two different suppliers, Chillicothe Metals and Ames Supply, in
Wayne Casting, Inc., produces a product made from a metal alloy. Wayne buys the alloy from two different suppliers, Chillicothe Metals and Ames Supply, in approximately equal amounts because of 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 alloy is highly toxic and any waste requires costly handling to avoid environmental accidents. Last year the cost of handling the waste totaled $330,000. Additional data from last year's operations are shown as follows Amount of material purchased (tons) Amount of waste (tons) Cost of purchases Chillicothe Metals 148 12.6 $ 688,000 Ames Supply 102 2.3 $ 912,000 Required: a. Allocate the cost of the waste handling to the two suppliers based on: 1. Amount of material purchased. 2. Amount of waste. 3. Cost of material purchased. Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Reg A3 Amount of material purchased. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Chillicothe Metals Ames Supply Total Allocated waste handling cost $ 0 Reg A1 Req A2 > Chillicothe Metals Ames Supply Total Allocated waste handling cost S 0 PAGAR Chillicothe Metals Ames Supply Total Allocated waste handling cost $ 0
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