Orville Knitters manufactures sweaters and uses an operation-costing system. Al

Orville
Knitters manufactures sweaters and uses an operation-costing system.
All sweaters are processed through Department no. 1 with subsequent
processing taking place in Department no. 2 or Department no. 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 no. 2 for
manufacturing.Conversion
cost incurred in the three departments totaled $504000 subdivided as
follows: Department no. 1 $360000; department no. 2 $60000; and
department no. 3 $84000.Data pertaining to two representative orders nos. 545 and 567 were: No.545 No. 567 Direct materials $112000 $94000 Number of sweaters 800 1300 Subsequent processing department No. 3 No. 2Required: A. Determine the cost of order nos. 545 and 567