Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher

Exercise 26

Cost Allocation: Reciprocal Method, Two Service Departments
During the past month, the following costs were incurred in the three production departments and two service departments of Postaic Company:

Required
Allocate service department costs to Fabrication, Assembly, and Finishing using the reciprocal method, and determine the total costs of Fabrication, Assembly, and Finishing after this allocation.