Otter Company ("OC") manufactures calculators and uses a process costing system. Thecalculators are manufactured in two departments. The integrated circuit board is assembled in the IC department and the completed boards are transferred to the Assembly department for completion and packaging. The boards from the IC department are transferred to the Assembly department at the start of the process. All direct material (100%) is added in the assembly department at the 20% completion point. Conversion costs are added evenly throughout the assembly process. During October 2017, OC manufactured and sold 150,000 calculators, generating total cash revenue of $5,250,000.

There was no beginning work-in-process (WIP) in the IC and Assembly departments at the beginning of October 2017. At the end of October 2017, there were 10,000 calculators in the WIP in the Assembly department. This WIP was 50% complete with respect to conversion costs. There was no end WIP in the IC department at the end of October 2017. The following table summarises the costs incurred in each department in October: