4) Audrey Auto Accessories manufactures plastic moldings for car seats. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through Department A and Department B. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production.

Data for Department A for February 2017 are:

Work in process, beginning inventory, 35% converted 400 units

Units started during February 900 units

Work in process, ending inventory: 300 units

25% as to conversion costs

100% as to materials

Costs for the Department A for February 2017 are:

Work in process, beginning inventory:

Direct materials $606,000