Transferred in Direct materials $56,250$40,250 Conversion costs $103,500$143,000 Percentage of completion: Beginning inventory Ending inventory 40%50% 80 50 Prepare journal entries that show the flow of manufacturing costs for the Assembly Department. (a) Materials are added at the end of the process, (b) conversion costs are recorded, and (c) the units are transferred to Finished Goods. (a) (b) (c) FIFO Method, Two-Department Analysis Muskoge Company uses a process-costing system. The company manufactures a product that is processed in two departments: Molding and Assembly In the Molding Department, direct materials are added at the beginning of the process; in the Assembly Department, additional direct materials are. added at the end of the process. In both departments, conversion costs are incurred uniformly throughout the process. As work is completed, it is transferred out. The following table summarizes the production activity and costs for February