WEEK FIVE: CHAPTER EIGHT HOMEWORK Saved Help Save & EX Ches 3 Problem 8-62 (Algo) Determine Degree of Completion: FIFO Method, Missing Data (LO 8-1, 5) 25 points 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 eBook Print $ 486,489 Beginning inventory (53,000 units, 40% complete with respect to Department S costs) Total cost (Department R and Department S) cost: Beginning inventory Current work (505,000 units started) Department R costs Department S costs References $3,454,100 1,464,301 Department R uses FIFO process costing to account for production. In January, beginning work-in-process inventory consisted of 53,000 units, 70 percent complete with respect to conversion. The cost of rubber pellets put in production in January was $2,380,000. The cost of thinner introduced into production in January was $1,071,000. Reported costs per equivalent unit for January were $4.00 per equivalent unit of rubber pellets and $1.80 per equivalent unit for thinner. Required: Based on the information available, the ending work-in-process inventory in January was: Multiple Choice Exactly 70 percent complete with respect to conversion cost. O At least 70 percent complete with respect to conversion cost. Less than 70 percent complete with respect to conversion cost. There is not enough information to determine the degree of completion