A more complicated situation is when a department is not the first one in the process because there are added costs that are coming from a prior department. Let's try this situation:

At Panther Company, materials are added at the beginning of the process and conversion costs are added uniformly.

Work in process, beginning:
Number of units	18,000
Transferred-in costs	$90,000
Direct materials (100%)	$30,500
Conversion costs (75%)	$27,400
Units transferred-in:
Number of units	56,500
Transferred-in costs	$643,500
Units completed	37,000
Costs during the period:
Direct materials	$159,475
Conversion costs	$215,225
Work in process, ending:
Number of units	37,500
(100% complete for materials and 35% complete for conversion)

What are the total cost of units remaining in ending WIP Inventory?