Zhau manufacturing company has two departments machining

Reference no: EM13581326

Zhau Manufacturing Company has two departments, machining and finishing. For a given period, the following costs were incurred by the company as a whole: drect material, $200,000; direct labor, $75,000; and indirect production, $80,000. The grand total was $355,000.

The machining department incurred 70% of the direct-material costs, but only 33%u2153% of the direct labor costs. As is commonplace, indirect production costs incurred by each department were allocated to products in proportion to the direct-labor costs of products within the departments.Three products were produced.

Product Direct Material Direct Labor

Sigma 40% 30%
Chi 30% 30%
Delta 30% 40%

Total for the machining department 100% 100%

Sigma 33%u2153% 40%
Chi 33%u2153% 40%
Delta 33%u2153% 20%

Total for the machining department 100% 100%The indirect production costs incurred by the machining and finishing departments and allocated to all products there in amounted to machining, $38,000 and finishing, $42,000.

1- Compute the total costs incurred by the machining department and added by the finishing department.

2- Compute the total costs of each product that would be shown as finished-goods inventory if all the products were transferred to finished stock on completion.

Reference no: EM13581326

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