Susie's Socks, Inc. manufactures 500 different types of socks from socks used by professional sports teams to those worn by babies and toddlers. The production of socks requires three stages of production: cutting, stitching, and assembly. Each type of sock is produced in batches and Susie uses a process costing system for tracking the costs of each batch in each process. Susie reported the following data for the operations of its stitching Department for the month of July for a custom batch of socks that was being produced for St. Jude's Hospitals for their patients.

Costs Units Material Conversion Beginning work in process 10.000 $8,620 $6.050 (80% complete with respect to material) (30% complete with respect to conversion) Started into production 120,000 $48,000 $65.000 Transferred out 42 000 Ending work in process (50% with respect to materials) 88.000 (25% with respect to conversion)