Philco Technologies manufactures Thunderbolt cables in a process that requires two departments. The production starts in department A and is completed in department B. In Department B direct materials are added at various points while conversion costs are incurred proportionally throughout the production process. This question focuses on Department B. Philco uses the FIFO method of process costing for both departments. Department B - Beginning WIP and October Production: On October 1, department B had 2,500 units in production (previously transferred in from department A). These units were 70% complete with respect to direct materials and 50% complete with respect to conversion. During October, 31,500 units were transferred from department A to department B. By the end of October, a total of 30,200 units were completed and transferred to finished goods inventory. Department B - Spoilage: 700 units started during October were spoiled (this is within the expected range of normal spoilage) and discarded. The inspection took place after all direct materials were added and with 80% of conversion completed. 300 units started in October were destroyed in a flash flood when they were 40% complete with respect to direct materials and 30% complete with respect to conversion. Department B - Ending WIP: The 2,800 units in ending work in process at the end of October are 52% complete with respect to direct materials and 37% complete with respect to conversion. These units have not yet been inspected for spoilage. Department B - Manufacturing Costs: The cost sheet for department B shows that the 2,500 units in production on October 1 carried over costs of $52,500 for transferred in units, $2,500 for direct materials, and $10,500 in conversion costs. During October, transferred in costs were $250,000, the cost of direct materials added were $43,000, and conversion costs added were $200,000. Required: Prepare the October production report for Department B. 7 B