< 1. Direct materials 800,000 Work in Process-Testing 1,340,000 2. Conversion costs 805,000 Ending inventory, Feb. 28 265,000 | 17-18 (25 min.) Zero beginning inventory, materials introduced in middle of process. Pilar Chemicals has a mixing department and a refining department. Its process-costing system in the mixing department has two direct materials cost categories (chemical P and chemical Q) and one conversion costs pool. The following data pertain to the mixing department for July 2014: Units Work in process, July 1 Units started 100,000 Completed and transferred to refining department 70,000 means Sonen Still 1. Costs $600,000 Chemical P 140,000 Chemical Q 360,000 Conversion costs Chemical P is introduced at the start of operations in the mixing department, and chemical Q is added when the product is three-fourths completed in the mixing department. Conversion costs are added evenly during the process. The ending work in process in the mixing department is two-thirds complete. +