Q. Top That manufactures baseball-style hats. Material is introduced at the beginning of the process in the Cutting Department. Conversion costs are incurred (and allocated) uniformly throughout the process. As the cutting of material is completed, the pieces are immediately transferred to the Sewing Department. Data for the Cutting Department for the month of February 2009 follow: Work-in-process, January 31-50,000 units 100% complete for direct materials; 40% completed for conversion costs actual costs of direct materials, s70,500; actual costs of conversion, $34,05o Units started during February, Units completed during February Work-in-process, February 28 100% complete for direct materials, 20% completed for conversion costs Direct materials added during February [actual costs] $342,000 Conversion costs added during February [actual costs $352,950 225,000 200 75,o00 units ,00O