THERE ARE TWO QUESTIONS RELATED TO THIS DATA. PLEASE MAKE SURE TO ANSWER BOTH QUESTIONS.

Blue Sky, Inc. manufactures hammocks in three sequential production departments. The company uses the weighted average method in its process costing system. Blue Sky uses a normal costing system to allocate manufacturing overhead (MOH) to production based on the number of machine hours logged during the period. Before the year began, Blue Sky estimated its total MOH for the year would be $400,000 and a total of 100,000 machine hours would be logged. The following data relates to the 800 physical units in the first process department's beginning inventory for March:

Percentages of completion	60% complete with respect to direct material, 10% complete with respect to conversion
Costs assigned to units	$1,296 for direct material costs, $2,416 for conversion costs

During March, 16,000 units were place into production in the first processing department. $47,076 of direct material costs and $216,262 of direct labor costs were added to the department's work in process inventory during the month. The department logged 78,175 actual machine hours during the month.

At the end of March, 300 hammocks were still in process in the first processing department. These hammocks were 60% complete with respect to direct material costs and 70% complete with respect to conversion costs.

Complete the following statements related to operations in the first processing department:

(round all calculations to the nearest hundreth)

QUESTION 1: The cost to complete a unit in the first department in February was

A.

$18.70

B.

$7.01

C.

$4.64

D.

$32.90

E.

$34.70

QUESTION 2: The cost of goods completed and transferred out during March to department 2 was

A.

$658,680

B.

$578,325

C.

$572,550

D.

$579,750

E.

$263,835