Inc. started the period with the following account balances:

Raw Materials .........$115,000

Work in Process:

Grinding Department ........$ 25,000

Mixing Department ........$ 7,000

Finishing Department........ $ 10,000

Finished goods ........$ 41,000

The following events occurred during the year:

1. Production of a new set of products began with a transfer of $60,000 worth of raw materials to the Grinding Department.

2. Conversion costs of $82,000 were incurred in the Grinding Department.

3. Products costing $150,000 were transferred from Grinding to the Mixing Department.

4. Materials costing $8,000 were added to the Mixing Department.

5. Conversion costs of $33,000 were incurred in the Mixing Department.

6. Products costing $178,000 were transferred from Mixing to the Finishing Department.

7. Conversion costs of $41,000 were incurred in the Finishing Department.

8. Products costing $206,000 were completed and transferred to the Finished Goods Inventory.

9. Products costing $230,000 were sold.

Required

a. Record the events in the inventory T-accounts. Be sure to show ending balances for all accounts.

b. Review your T-accounts and answer the following questions:

1. Which process does not require any materials to be added?

2. Which process appears to be the most expensive?

3. Assume 10,300 good units were produced during the year. What was the cost per unit? How many units were sold?