Question 10 (2 points) Work in process in Look Company's Grinding Department is: Work in process - Grinding Department Beginning inventory $ 670 To Finished Goods, 800 units Materials, 400 units, 55% completed Direct materials, 600 units @ $1.50 900 Direct labor, 30 hours @ $10.40 312 Factory overhead, 30 hours @ $16 480 Ending balance, 200 units, 40% completed All direct materials are added at the beginning of the process. Since the conversion cost per equivalent unit in the current period is $1.20, what is the cost of the first 400 units transferred out of the Grinding Department, assuming a FIFO flow of inventory? $ 886 $1,040 $934 $1.240