The cost of direct materials used during May is $30 500, and conversion costs incurred are $76 680 (see comprehensive example 3). Now that the moulding department has beginning work in process we will need to prepare two process cost reports to accommodate the differences in inventory valuation using the FIFO method or weighted average method. We will begin with the FIFO process cost report. Process cost reports with beginning and ending WIP FIFO valuation of inventory For May, we have to account not only for the current costs incurred, but also for the costs assigned to the ending WIP for April. The moulding department's WIP account has total costs of $117 380 recorded, and the breakdown for each cost pool is shown in figure 8.6. The total units to account for during May (12 000) include both beginning WIP (2000 units) and the units started during the month (10 000 units). The total work performed during the month is the sum of work performed to complete beginning WIP units (remaining 70 per cent of conversion activities), the units both started and completed in the current month, and the work performed on units started but not yet completed (estimated to be 40 percosts are allocated to the work performed to complete beginning WIP (S9940), to the units started and completed ($91 350), and to the equivalent units in ending WIP ($5890). How to calculate 9940 and 91350