Gray Manufacturing  Company makes pennants for college and university athletic teams. 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 2,000 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 $13,708 more of direct materials and $33,418 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, 1,200 pennants that were 40% complete as to conversion costs  remained in the Cutting Department. Conversion costs are applied evenly throughout the process.

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.

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.