FIFO Method, Valuation of Goods Transferred Out and Ending Work in Process McCourt Company uses the FIFO method to account for the costs of production. For the first processing department, the following equivalent units schedule has been prepared: Conversion Units started and completed Units, beginning work in process: 5,000 x 0% 5,000 x 40% Units, ending work in process: 3,000 x 100% Direct Materials 27,000 Costs 27,000 2,000 3,000 3,000 x 75% 2,250 Equivalent units of output 30,000 31,250 The cost per equivalent unit for the period was as follows: Direct materials $3.00 6.00 $9.00 Conversion costs Total The cost of beginning work in process was direct materials, $40,000; conversion costs, $60,000. Required: 1. Determine the cost of ending work in process. Determine the cost of goods transferred out.