The Cutting Department is the first stage of Mark Company’s production cycle. Conversion costs for this department were 80% complete as to the beginning work in process and 50% complete as to the ending work in process. Information as to conversion costs in the Cutting Department for January 2012 is as follows:
units conversion cost
| Work in process at January 1, 2012 | 25,000 | 22,000 |
| Units started and costs incurred during January | 135,000 | $143,000 |
|
Units completed and transferred to next department during January |
100,000 |
B. $38,100
C. $39,000
D. $45,000
