Pacific Ink had beginning work-in-process inventory of $802,560on October 1. Of this amount, $335,200 was the cost of directmaterials and $467,360 was the cost of conversion.The 59,000 unitsin the beginning inventory were 25 percent complete with respect toboth direct materials and conversion costs. During October, 124,000units were transferred out and 41,000 remained in endinginventory.The units in ending inventory were 75 percent completewith respect to direct materials and 35 percent complete withrespect to conversion costs. Costs incurred during the periodamounted to $3,094,000 for direct materials and $3,893,400 forconversion.



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