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

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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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