Problem 3-3. Production cost repor. Kao Tiles is a specialized producer of ceramic tiles. Its production process involves highly skilled workers and top-quality ceramic crafters. Work in Process is relatively large because each tile is in process for up to 3 weeks because of art, mold work, and drying time. October began with 5,000 units (a unit is one ceramic tile) in process, on average 65 percent complete as to direct materials and 35 percent complete as to conversion costs; 6,000 units were started during the month, and ending Work in Process inventory consisted of 7,000 units that were on average 75 percent complete as to direct materials and 50 percent complete as to conversion costs.

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