Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Zhang Manufacturing Company has two departments, machining and finishing. For a given period, the following costs were incurred by the company as a whole: direct

image text in transcribed

Zhang 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, $165,000; and indirect production, $80,000. The grand total was $675,000 The machining department incurred 30% of the direct-material costs, but only 10% of the direct-labor costs. Indirect production costs amounted to $38,000 in the machining department and $42,000 in finishing. Three products were produced using the following proportions of direct material and direct labor in the two departments. (Click the icon to view the data for the three products.) 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 Requirement 1. Compute the total costs incurred by the machining department and added by the finishing department Machining Finishing Total Data Table Direct materials Direct labor Indirect production Product Direct Material Direct Labor Total 40% 20% Alpha Beta 50% 10% 70% Gamma 10% 100% 100% Total for the machining department 10% 50% Alpha Beta 30% 40% 10% Gamma 60% 100% 100% Total added by finishing department

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Jan R. Williams, Susan F. Haka, Mark S. Bettner, Joseph V. Carcello

12th Edition

0071116796, 978-0071116794

More Books

Students also viewed these Accounting questions

Question

Describe a typical technical skills training program

Answered: 1 week ago