Otylia Manufacturing Company assembles its product in several departments. It has two departments that process all units. During February, the beginning work in process in the cutting department was half completed as to conversion, and complete as to direct materials. The beginning inventory included $12,000 for materials and $3,000 for conversion costs. Ending work-in-process inventory in the cutting department was 40% complete. Direct materials are added at the beginning of the process.

Beginning work in process in the finishing department was 75% complete as to conversion. Beginning inventories included $16,000 for transferred-in costs and $20,000 for conversion costs. Ending inventory was 25% complete. Additional information about the two departments follows:

Flow of production Physical Direct Units Materials Conversion Work in process, beginning 20,000 Started during period 40,000 To account for 60.000 Units transferred out 50,000 50,000 50,000 Work in process, ending 10,00 0 10,000 4,000 Accounted for 60 00 0) 60,000 54,000 Direct Costs Totals Materials Conversion Work in process, beginning 15,000 12,000 3,000 Costs added during period 96,600 51,000 45,600 Total costs to account for 111,600 63,000 48,600 Divided by equivalent units 60,000 57900 Equivalent-unit costs 1.95 1.05 0.90Assignment of costs - Units Cost per unit Amount Transferred out Work in process, ending Direct materials Conversion Costs accounted for