VII. (44 points) The questions below are based on the following data for the second process of a three-stage production process: Inventory in process, May 1, 50% completed Transferred into process in May 10 units 80 units Completed and transferred out of process in May 70 units 20 units Inventory in process, May 31, 25% completed May 1 inventory costs: Transferred in costs Conversion costs Current costs charged in May: Transferred-in costs Conversion costs Total costs to account for No new materials are added in process #2. $ 640 320 4800 2800 $8,560 1. In what month and in what department were the $320 incurred? 2. Compute the cost per equivalent unit for transferred-in costs and conversion costs using the weighted average method? 3. Suppose the department uses a standard cost system with standard conversion cost of $35/equivalent unit. What is the department's total variance for conversion costs for work done in May? Is it favorable or unfavorable? 4. Use the FIFO method to compute the cost of work transferred out in May