During the past month, the following costs were incurred in the three production departments and...
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Accounting
During the past month, the following costs were incurred in the three production departments and two service departments of Kim & Co.:
Using Department
Supplying Department
Administration
Factory Support
Fabrication
Assembly
Finishing
Administration
0.30
0.20
0.10
0.40
Factory support
0.15
0.25
0.10
0.50
Direct cost
$
490,000
$
1,255,000
$
1,570,000
$
269,000
$
239,000
Required:
Allocate service department costs to Fabrication, Assembly, and Finishing using the reciprocal method, and determine the total costs of Fabrication, Assembly, and Finishing after this allocation. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.)
Cost Allocation To: Administration Factory Support Fabrication Assembly Finishing From: Service department costs Administration Factory support Total allocations $ 0 $ 0 $ 0 $ 0 $ 0 Direct costs Total costs $ 0 $ 0 $ 0 $ $ 0
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