Gray Manufacturing Company makes pennants for college and university athletic teams. The company uses a process costing system to accumulate product costs as the pennants move through the two stages of production: cutting and silk-screening. All materials are added at the beginning of both cutting and silk-screening processes, while conversion costs are applied evenly throughout the process. At the beginning of September, the Cutting Department had 2,000 pennants in process that were 50% complete. The company had incurred $1,300 in direct materials cost and $1,250 in conversion cost to make them. During the month, the department added $13,708 more of direct materials and $33,418 in conversion costs. A total of 9,150 pennants were finished during September and transferred to the Silk-screening Department. At the end of the month, 1,200 pennants that were 40% complete remained in the Cutting Department.

Reconcile both the physical units and the product costs for the Cutting Department in September.