FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
Bartleby Related Questions Icon

Related questions

bartleby

Concept explainers

Question
Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two service departments,
Repair and Quality Control. Direct costs for each department and the proportion of service costs used by the various
departments for the month of March follow:
Department
Fabricating
Finishing
Repair
Quality
Control
Direct
Costs
$
140, 600
98, 200
42,000
78,400
Required Required
A
B
From:
Required:
Use the step method to allocate the service costs, using the following:
Service department
costs
Quality control
Repair
Total costs allocated
Proportion of Services Used by
Quality
Repair Control FabricatingFinishing
a. The order of allocation starts with Repair.
b. The allocations are made in the reverse order (starting with Quality Control).
0
0.3
Complete this question by entering your answers in the tabs below.
Quality
Control
0.3
0
Use the step method to allocate the service costs, using the following:
The allocations are made in the reverse order (starting with Quality Control).
Note: Amounts to be deducted should be indicated by a minus sign. Do not round
intermediate calculations.
$
0.4
0.2
0 $
< Required A
0.3
0.5
Cost Allocation To:
Repair Fabricating Finishing
0 $
0 $
Required B
0
Show less
expand button
Transcribed Image Text:Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two service departments, Repair and Quality Control. Direct costs for each department and the proportion of service costs used by the various departments for the month of March follow: Department Fabricating Finishing Repair Quality Control Direct Costs $ 140, 600 98, 200 42,000 78,400 Required Required A B From: Required: Use the step method to allocate the service costs, using the following: Service department costs Quality control Repair Total costs allocated Proportion of Services Used by Quality Repair Control FabricatingFinishing a. The order of allocation starts with Repair. b. The allocations are made in the reverse order (starting with Quality Control). 0 0.3 Complete this question by entering your answers in the tabs below. Quality Control 0.3 0 Use the step method to allocate the service costs, using the following: The allocations are made in the reverse order (starting with Quality Control). Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. $ 0.4 0.2 0 $ < Required A 0.3 0.5 Cost Allocation To: Repair Fabricating Finishing 0 $ 0 $ Required B 0 Show less
Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education