• Company: OceanPure Bottled Water
• Units:

• Beginning work in process: 0
• Started in production during October: 540,000 units
• Completed and transferred out to Packaging in October: 500,000 units

• Ending work in process inventory (45% completed): 40,000 units

• Costs:

• Beginning work in process: 0

• Costs added during October:

• Direct materials: $270,000
• Conversion costs: $162,000

• Total costs added during October: $432,000

• Requirement: Use the five-step process to calculate (1) the cost of the units completed and transferred out to the Packaging Department and (2) the total cost of the units in the Blending Department's ending work in process inventory.