SUBSEQUENT DEPARTMENT INCREASED DIRECT MATERIAL COSTS The M. K. Wheelie Corp. manufactures toy cars. In Department 1, the body of the toy car is formed out of plastic. In Department 2 four rubber wheels are placed on each car at the end of the process. Below is the activity of Department 2 for March: ODUCT COSTING Units transferred in 15,000 Cost transferred in $13,500 Costs incurred by Department 2: Direct materials. $.02 for each rubber wheel Direct labor $8,120 Factory overhead (applied) $6,090 Ending units in process... 3,000 ( complete as to conversion costs, no direct materials) Conversion costs are added evenly throughout the process. Required: a What direct materials costs were incurred during March? b What was the total cost of a completed unit transferred out of Department 2