Let's solve the problem step-by-step.
### Step 1: Determine the cost amount transferred to the 2nd processing department
We are given:
- Beginning balance for the 1st Department: 500,000
- January costs for the 1st Department: 1,000,000
- Ending balance for the 1st Department: 600,000
To find the transfer to the 2nd Department, we can use the following relationship:
[tex]\[ \text{Transfer to 2nd Department} = \text{Beginning Balance} + \text{January Costs} - \text{Ending Balance} \][/tex]
Substituting the given values:
[tex]\[ \text{Transfer to 2nd Department} = 500,000 + 1,000,000 - 600,000 = 900,000 \][/tex]
Therefore, the cost amount transferred to the 2nd processing department is 900,000.
### Step 2: Identify the cost amount incurred in the 2nd processing department
We are given:
- Beginning balance for the 2nd Department: 300,000
- January total cost for the 2nd Department: 1,000,000
- Ending balance for the 2nd Department: 700,000
- Transfer from 1st Department: 900,000 (calculated in Step 1)
First, let's calculate the total debits for the 2nd Department. The total debits include the beginning balance and the transfer from the 1st Department:
[tex]\[ \text{Total Debits} = \text{Beginning Balance} + \text{Transfer from 1st Department} \][/tex]
[tex]\[ \text{Total Debits} = 300,000 + 900,000 = 1,200,000 \][/tex]
Now, to find the cost incurred in the 2nd processing department during January, we can use the following relationship:
[tex]\[ \text{January Costs} = \text{Total Debits} - \text{Ending Balance} \][/tex]
[tex]\[ \text{January Costs} = 1,200,000 - 700,000 = 500,000 \][/tex]
Therefore, the cost amount incurred in the 2nd processing department during January is 500,000.
### Summary of Answers
1. The cost amount transferred to the 2nd processing department is 900,000.
2. The cost amount incurred in the 2nd processing department during January is 500,000.
This completes our detailed, step-by-step solution.
