Suppose that PETROIL Refining Company has no beginning inventory in refining process B in May. During May, it accumulated the following costs in its Goods-in-Process Inventory account:

Direct materials GOnVerslOniecccetecccrecacswseersrereicconaraeea orctasteesreecetiecccsavcnarscrecmbacssoisarcuseenertrerereaer PETROIL completed and transferred 500 tanks to the finished goods inventory during May. At the end of May, 250 unfinished tanks, were still in process. They were 100%

complete for direct materials but only 50% complete for conversion.

Required: (1) Prepare the schedules that PETROIL would include on its process cost sheet to assign the total direct materials and conversion costs to the completed tanks and to’ the ending inventory of unfinished tanks.

(2) Using T-accounts, record the transfer of the costs of completed tanks from the goods-in-process inventory to the finished goods inventory. TLK=2