Grand Marine Inc. (GMI) manufactures sailcloth used by sailmakers that produce sails for sailboats. GMI's sailcloth is the conventional polyester-based sail material and is used widely in recreational boating. Sailmakers throughout the world use GMI's sailcloth. The manufacture of sailcloth has a small number of processes, and GMI integrates them carefully so that there is very little work-in-process inventory. The product is measured in yards of cloth, which is prepared in rolls 42 inches wide. Because it has little work-in-process inventory, GMI also uses backflush accounting to simplify the accounting for its operations. GMI has the following information for the most recent accounting period. The beginning inventory of polyester fiber was $142,000 and the ending inventory was $147,000. Polyester fiber purchased Conversion cost incurred Direct materials standard cost Conversion standard cost Units produced Beginning Raw Materials Inventory Ending Raw Materials Inventory $ 690,000 $1,300,000 $4.35 per yard of cloth $8.50 per yard of cloth 155,000 yards of cloth $ 142,000 $ 147,000