Question

THE Company operates two departments, Department L and
Department Q. THE Company uses a FIFO process costing
system. Department L reported the following inventory
information for June:

                                     % complete    % complete
                            units       DM          conversion 
work in process, June  1    14,000      24%           79%
work in process, June 30    18,000      65%           41%

The cost of beginning work in process and the costs added
during June in Department L were as follows:

                                   DM             Conversion
work in process, June 1         $ 36,804           $ 24,660
costs incurred during June       288,298            266,328

During June, Department L completed 53,000 units and
transferred them to Department Q.

The cost to complete the units in beginning work in
process was equal to:

Group of answer choices

$75,516

$70,774

$61,464

$73,738

$83,062

$79,936

Part B.) Department L's work in process inventory balance at June 30 was equal to:

Group of answer choices

$80,790

$94,842

$102,195

$105,552

$181,800

$192,708

$193,818

$196,281

Part C.) The cost of goods started and completed in June for Department L was equal to:

Group of answer choices

$434,300

$521,248

$393,900

$170,174

$436,800

$554,626

$381,657

$473,836

Answer 1

Question 1

Correct answer-------------$127,348

Question 2

Correct answer-------------$94,842

Question 3

Correct answer-------------$521,248

Working

STEP 1 (FIFO)
Reconciliation of Units
	Units	% already completed		% completed this period
		Material	Conversion	Material	Conversion
Beginning WIP	14,000	24%	79%	76%	21%
Units introduced	57,000
Total units to be accounted for	71,000
Completed and Transferred unit	53,000	0%	0%	100%	100%
Ending WIP	18,000	0%	0%	65%	41%

.

STEP 2 (FIFO)
Equivalent Units
	Total Units	Material		Conversion
Units Transferred:		% completed this period	Equivalent Units	% completed this period	Equivalent Units
From WIP	14,000	76%	10,640	21%	2,940
From units started/Introduced	39,000	100%	39,000	100%	39,000
Total	53,000		49,640		41,940
	Total Units	Material		Conversion
Ending WIP		% completed this period	Equivalent Units	% completed this period	Equivalent Units
Total	18,000	65%	11,700	41%	7,380
Total EUP	71,000		61,340		49,320

.

STEP 3
Cost per Equivalent Units AND Cost to be accounted for
	Material		Conversion		TOTAL
Cost incurred in Current Period	$ 288,298		$ 266,328		$ 554,626
Total Equivalent Units	61,340		49,320
Cost per Equivalent Units	$ 4.70		$ 5.40		$ 10.10
Cost of Beginning WIP	$ 36,804		$ 24,660		$ 61,464
Total cost to be accounted for					$ 616,090

.

STEP 4
Cost report [Including Reconciliation]
	Cost of	Units Transferred		53,000.00	units
		Equivalent Units [Step 2]	Cost per Equivalent Units [Step 3]	Cost of Units Transferred	TOTAL
A	From Beginning WIP:
	Material	10,640	$ 4.70	$ 50,008
	Conversion	2,940	$ 5.40	$ 15,876	$ 65,884
B	From units started & completed
	Material	39,000	$ 4.70	$ 183,300
	Conversion	39,000	$ 5.40	$ 210,600	$ 393,900
C=A+B	Total				$ 459,784
D	Cost of Beginning WIP				$ 61,464
E=C+D	Total Cost of Units transferred				$           521,248.00
	Cost of	Ending WIP		18,000.00	units
		Equivalent Units [Step 2]	Cost per Equivalent Units [Step 3]	Cost of Ending WIP	TOTAL
F	Material	11,700	$ 4.70	$ 54,990
G	Conversion	7,380	$ 5.40	$ 39,852
H = F + G	Total Cost of Ending WIP				$ 94,842
I = E + H	Total Cost accounted for				$ 616,090
J	Rounding Off Differences				$ 0
K = I + J	Total cost to be accounted for [equals to computed in STEP 3]				$ 616,090