Example 2 Durall Company manufactures a plastic gasket that is used in automobile engines. The gaskets go through three processing departments: Mixing, Forming, and Stamping. The company's accountant (who is very inexperienced) has prepared a summary of production and costs for the Forming Department for October as follows: Forming Department Costs: Work in process inventory, October 1, 8,000 units materials 100% complete; conversion 7/8 complete. Costs transferred in from the Mixing Department.. Material added during October (added when processing is 50% complete in the Forming Department).. Conversion costs added during October... Total departmental costs. Forming Department costs assigned to Units completed and transferred to the Stamping Department, 100,000 units at $2.284 each.......... Work in process inventory, October 31, 5,000 units: Conversion 2/5 complete..... $22,420* 81,480 27,600 .96,900 $228,400 . $228,400 Total departmental costs assigned.. $228,400 *Consists of cost transferred in, $8,820; materials costs, $3,400; and conversion costs, $10,200. Prepare a production timeline to determine how complete the units are in terms of DM, CC, and TI.