The inventory at May 1 and the costs charged to work in process-department B during May for Stella Company are as follows.
Beginning WIP, 12,000 UNITS, 60% completed - 62,400
From Department A, 55,000 units started this period:
Direct materials added - 115,500
Direct Labor incurried - 384,915
Factory overhead incurred - 138,000
During May all direct materials are transferred from Department A, the units in process at May 1 were completed and of the 55,000 units entering the department, all were completed except 6,000 units which were 70% completed. Inventories are casted by the FIRST-IN-FIRST OUT METHOD.