How much is the cost of goods manufactured in department B?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 14EA: A production department within a company received materials of $10,000 and conversion costs of...
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How much is the cost of goods manufactured in department B?

6. Cost of Production Report; Normal and Abnormal Loss:
The Sterling Company uses process costing. In department B, conversion costs are
incurred uniformly throughout the process. Materials are added at the end of the
process, following inspection. Normal spoilage is expected to be 5% of good output.
The following information related to department B for January:
Units
12,000
9,000
2,000
Dollars
$84,000
Received from department A
Transferred to finished goods
Ending inventory (70% complete)
Cost incurred:
Materials
18,000
45,600
Labor and factory overhead
Transcribed Image Text:6. Cost of Production Report; Normal and Abnormal Loss: The Sterling Company uses process costing. In department B, conversion costs are incurred uniformly throughout the process. Materials are added at the end of the process, following inspection. Normal spoilage is expected to be 5% of good output. The following information related to department B for January: Units 12,000 9,000 2,000 Dollars $84,000 Received from department A Transferred to finished goods Ending inventory (70% complete) Cost incurred: Materials 18,000 45,600 Labor and factory overhead
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