The audited financial statements from the prior year show the following ending balances: UNITS COSTS WIP (Materials 100% and Conversion 80% complete from prior year audited Balance 200,000 $704,000 Sheet FINISHED GOODS 0 $0 from prior year audited Balance Sheet The year-end balances are shown as follows (the units have been verified through a year-end count, the $$ are from the UNaudited Trial Balance: UNITS COSTS 200,000 $954,000 WIP (Materials 100% & Conversion 50% complete) 300,000 $903,000 FINISHED GOODS renouas .com Manufacturing Overhead is applied at the rate of 60% of direct labor cost. A review of Ghost's inventory and cost records has disclosed the following data (all of this information has been verified through physical counts or through tracing information back to source documents): BEGINNING WIP (100% Materials & 80% Conversion complete) UNITS STARTED INTO PRODUCTION COSTS ADDED DURING THE YEAR UNITS MATERIALS LABOR 200,000 $200,000 $315,000 1,000,000 UNITS COMPLETED AND TRANSFERRED DURING THE YEAR 900,000 $1,300,000 $1,995,000