PROBLEM 3-14. Production Cost Report [LO 2, 3] Sassy Cotton produces fine cotton cotton is processed and finished before being shipped out to clothing companies. Material is added in the beginning of processing, and conversion costs are added evenly throughout processing. At the beginning of July, Sassy had 8,000 units in process that were 100 percent complete as to material and 40 percent complete as to labor and overhead. The company started 31,000 units into production during the month of July. At the end of July, 8,500 units were in ending Work in Process inventory and were 60 percent complete as to conversion costs. Cost data are as follows: Beginning Work in Process: Direct materials Direct labor Manufacturing overhead $7,500 3,400 2,200 Costs added during July: Direct materials $33,060 Direct labor 10,484 Manufacturing overhead 17,024