Meetha Corporation is in the candy manufacturing business. Products go through two production departments (A first, then B). Data from those departments for September 2012 are presented below.

Meetha Corporation started 2,600 units of product during the month in department A. Costs incurred in department A for September 2012 totaled $64,000 for material and $132,000 for conversion. Additionally, department B incurred conversion costs in September 2012 of $600,000. Department B adds no materials to the product.
Instructions
(a) Journalize the transfer of goods from department A to department B during September 2012. Meetha Corporation accounts for its costs using the FIFO method.
(b) Prepare a production cost report for department B for September 2012.

Transcribed Image Text:

Department A Department B Beginning work in process Beginning work in Number of units % complete for materials % complete for transferred-in % complete for conversion Total materials cost Total conversion cost Total transferred-in costs 1000 200 100% 100% $24,000 $30,000 $40,000 $15,000 Ending work in process Ending work Number of units % complete for materials % complete for transferred-in % complete for conversion 100% 100% 40%