Practice Problem #1 Annenbaum Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 400 units. The costs and percentage completion of these units in beginning inventory were: Materials costs... Conversion costs Cost $5,700 $6,800 Percent Complete 65% 45% A total of 6,500 units were started and 5,900 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Materials costs.. Conversion costs $125,500 $207,000 The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs. Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places. 1. Calculate their equivalent units of product. 2. Calculate cost per equivalent unit. 3. Calculate cost of goods transferred to the next department. 4. Calculate cost of goods in ending work-in-process inventory. 5. Prepare a cost reconciliation report