EXERCISE 18.10 Process Costing through Two Departments: Department I Accessory World makes floor mats for the automobile industry. Finished sets of mats must pass through two departments: Cutting and Coating. Large sheets of synthetic material are cut to size in the Cutting Department and then transferred to the Coating Department, where each set is sprayed with a chemical coating for improved durability. The following information pertains to May activity in the Cutting Department. Cost data: Total cost of beginning inventory on May 1 $44,800 Direct materials costs incurred in May 200,000 Conversion costs incurred in May 87,200 Physical units data: Units in process, May 1 8,000 sets Units started in May 50,000 sets Units in process, May 31