Homework Sourse000928 SolutionSolution a Allocating the Cost of the Waste
000928 $
Solution
Solution:
a) Allocating the Cost of the Waste Handling to the Two Suppliers Based on:
1. Amount of Material Purchased:
2. Amount of Waste:
3. Cost of Material Purchased:
| Chillicothe Metals | Ames Supply | Total | |
| Material Purchased (Tons) | 130 | 120 | 250 |
| Percentage | 52% | 48% | 100% |
| Allocated Waste Handling Cost ($300,000) | $156,000 | $144,000 | $300,000 |
