Zeno Manufacturing Company has two departments, machining and finishing. For a given period, the following costs were incurred by the company as a whole: direct material, $430,000; direct labor, $75,000; and indirect production, $120,000.

The grand total was $625,000. The machining department incurred 60% of the direct-material costs, but only 10% of the direct-labor costs. Indirect production costs amounted to $24,000in the machining department and $96,000 in finishing.

Three products were produced using the following proportions of direct material and direct labor in the two departments.

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(Click the icon to view the data for the three products.)

Data table

Product	Direct Material	Direct Labor
Alpha	50%	20%
Beta	30%	70%
Gamma	20%	10%
Total for the machining department	100%	100%
Alpha	10%	60%
Beta	30%	20%
Gamma	60%	20%
Total added by finishing department	100%	100%

As is commonplace, indirect production costs incurred by each department were allocated to products in proportion to the direct-labor costs of products within the departments.

Read the requirements

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Requirements

1.	Compute the total costs incurred by the machining department and added by the finishing department.
2.	Compute the total costs of each product that would be shown as finished-goods inventory if all the products were transferred to finished stock on completion. (There were no beginning inventories.)

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Part 1

Requirement 1. Compute the total costs incurred by the machining department and added by the finishing department.

	Machining	Finishing	Total
Direct materials
Direct labor
Indirect production
Total