During the past month, the following costs were incurred in the three production departments and two service departments of Kim &Co.Using DepartmentFinishingAssemblySupplying DepartmentAdministrationFabricationFactory SupportAdministration0.400.300.200.100.10Factory support0.300.100.50520,000$1,270,000$1,600,000$272,000$242,000Direct costRequired: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.)Cost Allocation To:Factory SupportFrom:AdministrationFabricationAssemblyFinishingService department costsAdministrationFactory supportTotal allocationsDirect costsTotal costs

Compute the Service department costs:

Answered: During the past month, the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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