Upton Knitters manufactures sweaters and uses an operation-costing system. All sweaters are processed through Department Number 1, with subsequent processing taking place in Department Number 2 or Department Number 3, depending on the type of fabric used. Twenty thousand sweaters were produced during the year; there was no beginning or ending work in process. Sixty percent of the goods were sent to Department Number 2 for manufacturing.

Conversion cost incurred in the three departments totaled $504,000, subdivided as follows: Department 1: $360,000; Department 2: $60,000; Department 3: $84,000. Data pertaining to two representative orders, number 545 and 567, were: Subsequent processing department No. 3 No. 2 Required: A. Briey discuss the similarities and differences of an operation-costing system and a j ob-order costing system. (3 points) B. Briey discuss the similarities and differences of an operation-costing system and a process-costing system. (3 points) C. Determine the cost of order nos. 545 and 567. (12 points)