Saline Solutions uses process costing to account for production of its unique compound BG at its River Plant. The River Plant has two departments: R and S. Raw materials are added at two points in the production of BG. First, rubber pellets are added at the beginning of production in Department R. Next, a liquid thinner is added in Department R when the product is 70% complete with respect to conversion costs. Once the basic compound is completed in Department R, it is transferred to Department S for mixing and packaging. The following information is available from the River Plant for May. (No new material is added in Department S.) Department S Production and Costs: May Beginning inventory (55,000 units, 308 complete with respect to Department S costs) Total cost (Department R and Department S) cost: Beginning inventory $ 489, 199 Current work (515,000 units started) Department R costs $3, 457, 100 Department S costs 1,574, 451 Department R uses FIFO process costing to account for production. In January, beginning work-in-process inventory consisted of 55,000 units, 70 percent complete with respect to conversion. The cost of rubber pellets put in production in January was $2,400,000. The cost of thinner introduced into production in January was $1,320,000. Reported costs per equivalent unit for January were $5.00 per equivalent unit of rubber pellets and $2.75 per equivalent unit for thinner. Required: Based on the information available, the ending work-in-process inventory in January was: Multiple Choice O Less than 70 percent complete with respect to conversion cost. O Exactly 70 percent complete with respect to conversion cost. O At least 70 percent complete with respect to conversion cost. O There is not enough information to determine the degree of completion