Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two service departments, Repair andQuality Control. Direct costs for each department and the proportion of service costs used by the various departments for themonth of March follow:DepartmentFabricatingFinishingRepairQuality ControlRequired ARequired BDirect Costs Repair$ 136,600102, 20043,80081,800Required:Use the step method to allocate the service costs, using the following:From:a. The order of allocation starts with Repair.b. The allocations are made in the reverse order (starting with Quality Control).Service department costsRepairQuality controlTotal costs allocatedComplete this question by entering your answers in the tabs below.$$RepairProportion of Services Used byQualityControl00.8Use the step method to allocate the service costs, using the following:The order of allocation starts with Repair.Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations.43,800 $(43,800)00$0.20Fabricating FinishingCost Allocation To:QualityControl81,8008,760(90,560)0.60.1Fabricating0 $26,28026,280$0.20.1Finishing8,7608,760

The costs are allocated among the departments using various methods such as direct, step, and…

Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two service departments, Repair 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 Proportion of Services Used by Quality Control Direct Costs Repair $ 136,600 102,200 43,800 81,800 0 0.8 0.2 0 Fabricating Finishing 0.6 0.1 Required: Use the step method to allocate the service costs, using the following: . The order of allocation starts with Repair. . The allocations are made in the reverse order (starting with Quality Control). 0.2 0.1

Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two service departments, Repair 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 Proportion of Services Used by Quality Control Direct Costs Repair $ 136,600 102,200 43,800 81,800 0 0.8 0.2 0 Fabricating Finishing 0.6 0.1 Required: Use the step method to allocate the service costs, using the following: . The order of allocation starts with Repair. . The allocations are made in the reverse order (starting with Quality Control). 0.2 0.1

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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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 Proportion of Services Us by Quality Direct Costs Repair $ 130,600 90, 200 38,400 71, 600 0 0.8 Control Fabricating Finishing 0.2 0 Required: Use the step method to allocate the service costs, using the following: 0.5 0.1 a. The order of allocation starts with Repair. b. The allocations are made in the reverse order (starting with Quality Control). 0.3 0.1
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a. The cost of Work in process beginning, in Dept X is? b. The cost of Work in process -End, in Dept X is? c. The cost of Work in process beginning, in Dept X is?
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: Proportion of Services Used by Department Direct Costs Repair Quality Control Fabricating Finishing Fabricating $ 136,600 Finishing 102,200 Repair 43,800 0 0.2 0.6 0.2 Quality Control 81,800 0.8 0 0.1 0.1 Required: Use the step method to allocate the service costs, using the following: The order of allocation starts with Repair. The allocations are made in the reverse order (starting with Quality Control). Complete this question by entering your answers in the tabs below. Required A Required B Use the step method to allocate the service costs, using the following:The order of allocation starts with Repair.Note: Amounts to be deducted should be indicated by a…
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