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Moon Gazers, Inc., produces telescopes for use by high school students. All direct materials used in the production of telescopes are added at the beginning of the manufacturing process. Labor and overhead are added evenly thereafter, as each unit is assembled, adjusted, and tested. Moon Gazers uses process costing and had the following unit production information available for the months of January and February.

 Jan.Feb.Number of units in beginning work in process inventory0 100 Number of units started during the month400 500 Total number of units transferred to finished goods300 140 

The units remaining in work in process at the end of January were approximately 60 percent complete. During the month of February, all of the beginning work in process units were completed and the units remaining in work in process at the end of the month were approximately 80 percent complete.

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