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Posted: November 27th, 2020
Cameron Company has two production departments and a maintenance department. In addition, the company
Problem 2
Cameron
Company has two production departments and a maintenance department. In
addition, the company keeps other costs for the general plant in a separate
account. The estimated cost data for Year 1 follow:
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The general plant services the three departments in the following proportions:
50 percent (Department 1); 30 percent (Department 2); 20 percent (Maintenance).
Allocate maintenance costs based on maintenance hours. Allocate maintenance
department and general plant costs to the production departments. Use the step
method, starting with general plant costs
Problem 3
A company processes a chemical,
DX-1, through a pressure treatment operation. The complete process has two
outputs, L and T. The January costs to process DX-1 are $50,000 for materials
and $100,000 for conversion costs. This processing results in two outputs, L
and T that sell for a total of $250,000. The sales revenue from L amounts to $200,000
of the total. Using the net realizable method, assign costs to L and T for
January.
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