Homework Answers
The total cost accumulated in finishing department using reciprocal method is $ 1,127,041.
| Design | Support | Assembly | Finishing | |
| Direct Cost | 110,000 | 490,000 | 440,000 | 700,000 |
| Dept. Y | (162,245) | 32,449 | 16,225 | 113,572 |
| Dept. Z | 52,245 | (522,449) | 156,735 | 313,469 |
| - | - | 612,959 | 1,127,041 |
Y = $ 110,000 + 0.1Z
Z = $ 490,000 + 0.2Y
Y = $ 110,000 + 0.1 ($ 490,000 + 0.2Y)
= $ 110,000 + 49,000 + 0.02Y
Y = $ 162,245
Z = $ 490,000 + 0.2 * 162,245
= $ 522,449
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