please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) During the past month, the following costs were incurred in the three production departments and two service departments of Kim &Co.:Supplying DepartmentAdministration.Factory supportDirect costAdministration0.10$ 620,000Using DepartmentFactory Support Fabrication0.40$1,320,0000.300.30$1,700,000Assembly0.200.10$282,000Finishing0.100.50$252,000Required:Allocate service department costs to Fabrication, Assembly, and Finishing using the reciprocal method, and determine the total costsof Fabrication, Assembly, and Finishing after this allocation. (Negative amounts should be indicated by a minus sign. Do not roundintermediate calculations. Round your final answers to the nearest whole dollar amounts.)4

The reciprocal method is one of the methods in cost allocation. such a method uses a simultaneous…

During the past month, the following costs were incurred in the three production departments and two service departments of Kim & Co.: Supplying Department Administration. Factory support Direct cost Administration 0.10 $ 620,000 Using Department Factory Support Fabrication Assembly 0.40 0.20 0.30 0.30 $1,700,000 $282,000 0.10 $1,320,000 Finishing 0.10 0.50 $252,000 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.)

During the past month, the following costs were incurred in the three production departments and two service departments of Kim & Co.: Supplying Department Administration. Factory support Direct cost Administration 0.10 $ 620,000 Using Department Factory Support Fabrication Assembly 0.40 0.20 0.30 0.30 $1,700,000 $282,000 0.10 $1,320,000 Finishing 0.10 0.50 $252,000 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.)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 28E: Minor Co. has a job order cost system and applies overhead based on departmental rates. Service...

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During the past month, the following costs were incurred in the three production departments and two service departments of Kim & Co. Using Department Finishing Assembly Supplying Department Administration Fabrication Factory Support Administration 0.40 0.30 0.20 0.10 0.10 Factory support 0.30 0.10 0.50 520,000 $1,270,000 $1,600,000 $272,000 $242,000 Direct cost 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: Factory Support From: Administration Fabrication Assembly Finishing Service department costs Administration Factory support Total allocations Direct costs Total costs
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Midland Resources has two production departments (Fabrication and Assembly) and three service departments (Engineering, Administration, and Maintenance). During July, the following costs and service department usage ratios were recorded. Supplying Department Engineering Administration Maintenance Direct cost Engineering Administration Maintenance Using Department Engineering Administration Maintenance Fabrication Total 0 10% 0 $30,000 50% 0 30% Costs $213,300 Allocated to: Fabrication 0 20% 0 $40,000 Required: Allocate the service department costs to the two operating departments using the reciprocal method. (Do not round intermediate calculations.) Assembly 10% 50% 15% $200,000 Assembly 40% 20% 55% $50,000
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Service Department Cost Allocation Presented below are certain operating data for the four departments of Tally Manufacturing Company. Service Production 1 2 1 2 Total manufacturing overhead costs either identifiable with or allocated to each department $120,000 $144,000 $180,000 $196,000 Square feet of factory floor space 80,000 160,000 Number of factory workers 60 20 Planned direct labor hours for the year 40,000 60,000 Allocate, to the two production departments, the costs of service departments 1 and 2, using factory floor space and number of workers, respectively, as bases. Do not round bases when calculating reallocations of service departments. Production 1 2 Identifiable and allocated overhead Reallocation of service departments: Dept. 1 Factory floor space Dept. 2 Number of factory workers Total manufacturing overhead What is the apparent overhead rate for each…
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In December, Davis Company had the following cost flows: Molding Department Grinding Department Finishing Department Direct materials $111,600 $30,000 $17,200 Direct labor 8,000 13,600 11,600 Applied overhead 8,400 60,400 11,200 Transferred-in cost: From Molding 128,000 From Grinding 232,000 Total cost $128,000 $232,000 $272,000 Required: 1. Prepare the journal entries to transfer costs from (a) Molding to Grinding, (b) Grinding to Finishing, and (c) Finishing to Finished Goods. 2. CONCEPTUAL CONNECTION: Explain how the journal entries differ from a job-order cost system. CHART OF ACCOUNTS Davis Company General Ledger ASSETS 110 Cash 120 Accounts Receivable 130 Raw Materials 142 Work in Process-Grinding 143 Work in Process-Molding 144 Work in Process-Finishing 150 Overhead Control 160 Finished Goods 180 Accumulated Depreciation LIABILITIES 210 Accounts Payable 220 Wages Payable 230 Utilities Payable 240 Lease Payable 250 Other Payables EQUITY 310 Common Stock 320 Retained…