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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

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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-sereening. 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 502 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 comversion 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. 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-sereening. 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 502 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 comversion 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

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