ABC Manufacturing Company applies process costing in the manufacture of its sole product, "MYSTICA". Manufacturing starts in Department 1 where materials are all added at the start of processing. The good units are then transferred to Department 2 where all the incremental materials needed for its completion are added after final inspection. In Department 1, units are inspected at the end of processing while in Department 2, inspection takes place when the units are 90% completed. Department 1 uses FIFO costing, while Department 2 uses weighted average costing. The production for the month of May show the following: Beginning work in process (May 1) Work to be done Department 1 20,000 80% 30,000 Department 2 10,000 20% 17,500 Work completed 2/3 5/7 Started in process during the month of May 150,000 Normal spoilage 4% of units started in process 2,500 Abnormal spoilage 1/4 of normal spoilage 1,250 Ending work in process (May 31) Work in process, May 1: Department 1 Department 2 285,450 214,875 280,725 Transferred in Materials 135,000 Conversion costs 97,500 Current Costs: Transferred in: ? Materials 1,980,000 840,000 Conversion costs 3,088,800 1,282,500