Cobalt Waxen Production Cost Report - Mixing Department Month Ended March 31 Equivalent Units Physical Direct Conversion UNITS Units Materials Costs Units to account for: Total units to account for Units accounted for: Transferred to Molding Department Total units accounted for Work-in-Process Inventory-Mixing Balance, Mar. 1 30,700 Direct materials 60,000 Direct labor 19,850 Manufacturing overhead 68,880 The Mixing Department combines the direct materials of paraffin wax and pigments. The heated mixture is pumped to the Molding Department, where it is poured into molds. After the molds cool, the crayons are removed from the molds and are transferred to the Packaging Department, where paper wrappers are added and the crayons are boxed. In the Mixing Department, the direct materials are added at the beginning of the process and the conversion costs are incurred evenly throughout the process. Work in process of the Mixing Department on March 1, 2018, consisted of 700 batches of crayons that were 40% of the way through the production process. The beginning balance in Work-in-Process InventoryMixing was $30,700, which consisted of $11,500 in direct materials costs and $19,200 in conversion costs. During March, 5,000 batches were started in production. The Mixing Department transferred 3,200 batches to the Molding Department in March, and 2,500 were still in process on March 31. This ending inventory was 70% of the way through the mixing process. Cobalt Waxen uses FIFO process costing