Beginning inventory	1,200	gal
Direct materials added	9,200	gal
Ending inventory	2,100	gal
Conversion costs incurred	$24,975
Cost of direct materials added	$80,400
Conversion costs, beginning inventory	$1,500
Cost of direct materials, beginning inventory	$2,800

Paint Company uses a process-costing system. Materials are added at the beginning of a particular process, and conversion costs are incurred uniformly. Work in process at the beginning of the month is 15% complete, while at the end it is 25% complete. One gallon of material makes one gallon of product.

Use the weighted-average method. Prepare a schedule of output in equivalent units and a schedule of application of costs to products.

		Equivalent Units
(gallons)	Physical	Direct	Conversion
Flow of Production	Units	Materials	Costs
Work in process, beginning
Started in the period
Units to account for
Completed and transferred out
Work in process, ending
Units accounted for
Work done to date

Show the cost of goods completed and cost of ending work in process.

First, summarize the total costs to account for.

		Total	Direct	Conversion
		Costs	Materials	Costs
Total costs to account for