Under the Sea, Inc. manufactures pearl necklaces in two sequential production departments: machining and packaging. Two direct materials, pearls and string, are used in the machining department. The string is added at the beginning of the production process and accounts for 30% of the direct material input. The pearls are added when the conversion process is 50% complete. Conversion costs are incurred uniformly throughout production in the machining department The machining department began July with 300 necklaces in process and started another 600 necklaces during the month. At month end, 150 necklaces remained in process in the department and were assigned a cost of $12,000 on the department's July production cost report. $4,000 of which was for conversion costs. Management estimates that the units in ending inventory are 80% complete with respect to conversion costs. Given the information above, which of the following statements is incorrect with regard to the machining department's July operations? OA. The costs transferred to the packaging department during July equal $65,000. OB. The cost to complete a necklace in the machining department during July is $86.67. OC. Equivalent units in ending inventory each receive $33.33 of conversion costs at month end. OD. The total costs to account for in the machining department during July equals $77,000. OE Machining worked on 750 physical units during July.