The Studley Company adds direct materials at the beginning of the manufacturing process. On May 1, 2,200 units were in process. All direct materials had been added and they were 40 % complete as far as conversion costs. The cost of the beginning inventory consisted of direct materials of $3,440 and conversion costs of $6,480. During May 31 24,400 units were added at a material cost of $45,140. Conversion costs were $66,038. On May 31 there were 2,000 units in the ending inventory. All direct materials were added and they were 60% complete for conversion costs.

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