The Kawilihan Manufacturing Inc. uses a process cost accounting system. The production data for the month of May show the following: Dept. 2 Dept. 3 Physical Units In process, May 1 8,000 4,000 Stage of completion 1/4 3/4 Received from preceding department 42,000 Finished and transferred to next dept. ? In process, May 31 Stage of completion 5,000 1,000 75% 40% In Dept. 2, materials are applied as follows: 40% at the start of the process; 20% when the process reaches midpoint; and the balance at the end of the process. In Dept. 3, 25% of the materials is applied at the start of the process; 45% when the process reaches 3/4 completion; and the balance at the end. Both departments apply conversion costs uniformly throughout the process. TE At 58