The company uses a process costing system to accumulate product costs as the pennants move through the two stages of production: cutting and silk-screening. All materials are added at the beginning of both cutting and silk-screening processes, while conversion costs are applied evenly throughout the process.

At the beginning of September, the Cutting Department had 1,000 pennants in process that were 50% complete. The company had incurred \($1,300\) in direct materials cost and

\($1,250\) in conversion cost to make them. During the month the department added \($13,195\) more of direct materials and \($32,875\) in conversion costs. A total of 9,150 pennants were finished during September and transferred to the Silk-screening Department. At the end of the month, 2,000 pennants that were 30% complete remained in the Cutting Department.

Required

a. Calculate the number of pennants started in the Cutting Department during September.

b. Calculate the equivalent units of production for the Cutting Department for September.

(Hint: Materials equivalent units and conversion equivalent units will not be the same.)

c. What was the ending balance in the Cutting Department’s Work in Process Inventory account in dollars?

d. How much cost was transferred from the Cutting Department to the Silk-screening Department during September?

e. Reconcile both the physical units and the product costs for the Cutting Department in September.