Question 1Rayol Inc uses a process cost system to accumulate the costs it incurs to produce aluminum stabilizers from recycled aluminum cans. The July 1 inventory in the finishing department consisted of 63,000 units, fully complete as to materials and 80 per cent complete as to conversion.The beginning inventory cost $288,000 consisted of $216,000 of costs transferred in from the molding department conversion costs (conversion costs are direct labor and overhead). The costs incurred in the finishing department for July appear as follows:Costs transferred from molding department $720,000 (excluding costs in beginning inventory)Costs added in finishing department in July:(Excluding costs in beginning inventory): $63,600Materials 131,376Conversion costs $914,976The finishing department received 120,000 units from the molding department in July. During July, 127,200 units were completed by the finishing department and transferred out. As of July 31, 28,800 units,
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