M5 Inc. makes customized equipment components from aluminum, steel, or some combination of the two. The parts generally take the same amount of time and effort to assemble. M5 Inc. developed the following standard costs for each type of component:

M5 Inc. began the year with no beginning WIP Inventory. During January, 500 components were started: 200 were made from aluminum, 175 were made from steel, and 125 were made from a combination of aluminum and steel. At the end of January, 80 components were not yet complete: 15 made from aluminum, 30 made from steel, and 35 made from a combination of aluminum and steel. The stage of completion for each cost component for the 80 unfinished components was as follows:

a. Calculate the cost of components completed during January.

b. Calculate the cost of components in ending WIP Inventory.

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Direct material .. Direct labor (2 hours). Overhead (based on 2 hours). Total ... Aluminum Steel $ 80 $ 60 Combination $ 70 40 40 40 75 75 75 $195 $175 $185