Meetha Corporation is in the candy manufacturing business. Products go through two production departments (A first, then B). Data from those departments for September 2022 are presented below. 

Meetha Corporation started 2,600 units of product during the month in department A. Costs incurred in department A for September 2022 totalled $64,000 for direct materials and $132,000 for conversion. Additionally, department B incurred conversion costs in September 2022 of $600,000. Department B adds no direct materials to the product. 

Instructions 

a. Journalize the transfer of goods from department A to department B during September 2022. Meetha Corporation accounts for its costs using the FIFO method.

b. Prepare a production cost report for department B for September 2022.

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Number of units % complete for direct materials % complete for transferred-in % complete for conversion Total direct materials cost Total conversion cost Total transferred-in costs Number of units % complete for direct materials % complete for transferred-in % complete for conversion Department A Beginning work in process inventory 1,000 100% 60% $24,000 $30,000 Ending work in process inventory 600 100% 30% Department B Beginning work in process inventory 200 100% 30% $40,000 $15,000 Ending work in process inventory 300 100% 40%