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Barstow Manufacturing Company has two service departments-product design and engineering support, and two production departme
O $557,551. ○ $2,009,592 S1182 449 $1,182,449 $612,959. $1,127,041.
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Answer #1

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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