Production Information shows the following costs and units for the smoothing department in August Cost Work in process Beginning balance: materials $1,500 Beginning units 650 Beginning balance: conversion 2.700 Transferred in 1,770 Materials 7,454 Transferred out 1,760 Labor 14,540 Overhead 9,072 All materials are added at the beginning of the period. The ending work in process is 40% complete as to conversion. What is the value of the inventory transferred to finished goods and the value of the WIP Inventory at the end of the month? Transferred outs Ending inventory Add the beginning units to the units transferred in to determine units to account for. Subtract the ending work in process units to determine the number of units transferred out. From there, apply the percentages for both materials and conversion to the ending inventory amount and add it to the units completed and transferred out. Remember that costs assigned to materials are only material-related costs. Costs assign to conversion is the other product costs involved in the manufacturing process. The cost of units transferred out is determined by considering the units transferred out and the individual costs per unit for both materials and conversion. The ending inventory cost factors in the weights for materials and conversion and implements the individual costs per unit for both materials and conversion in the calculation