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Soline Solutions uses process costing to account for production of its unique compound BG at its River Plant. The River Plant has two departments: R

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Soline 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, aliquid thinner is added in Department R when the product is 60 percent complete with respect to conversion costs. Once the basic compound is completed in Department R, it is transferred to Departments for mixing and packaging. The following information is available from the River Plant for May (No new material is added in Departments.) Departments Production and Costs: May 3482, 424 Beginning inventory (50,000 units, 30% complete with respect to Department s costs) Total cost (Department R and Departments) cost: Beginning inventory Current work (490,000 units started) Department costs Department 5 costs $3.449,600 1,594,376 The ending inventory has 70.000 units, which are 100 percent complete for Department R costs Required: a. Assume that Saline Solutions used weighted average process costing and that the cost per equivalent unit for May for materials in Department is $7.20 and for conversion costs it is $3.20. Prepare a production cost report for Saline Solutions Departments for the month of May. b. What is the cost of product transferred out of Departments for May? c. What is the cost of ending inventory in Departments for May? Required A Required B Required C What is the cost of product transferred out of Department S for May? Cost of product transferred out

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