A packaging department receives $10,200 from baking and adds materials of $1,100, labor of $3,000 and applied overhead of $900. What is the cost of the batch transferred to Finished Goods?

1. Packaging carries four debits: the $10,200 transferred in plus its own three manufacturing costs. 2. Those three are $1,100 of direct materials, $3,000 of direct labor and $900 of applied overhead. 3. The four debits total $15,200. 4. Once the batch is packed the product is entirely complete, so Finished Goods is debited $15,200. 5. Work in Process for packaging is credited the same $15,200 and closes at zero for that batch. _Source: Jonick, Principles of Managerial Accounting (UNG Press, CC BY-SA 4.0), section 3.2 Process Costing Transactions for a Manufacturing Company_