EXERCISE 3-11. Costing Units Completed and Ending Work In Process Howell Super Server produces a single model, the HM24, in a continuous production process.

Eighty percent of materials are added at the beginning of production and the other 20 percent are added immediately before transfer to the finished goods warehouse. Conversion costs are assumed to be added evenly throughout the process. At the end of October 2006, there were four servers in process, 60 percent complete as to labor and overhead. Eighty-five servers were completed during the month. Assume that direct materials cost per equivalent unit during October was $2,500, labor cost per equivalent unit was $1,000, and overhead per equivalent unit was $2,000.

Required Determine the cost of the ending Work in Process Inventory and the cost of items completed and transferred to Finished Goods Inventory.