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    18,000      28%           67%
work in process, June 30    34,000      71%           57%

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         $ 35,240           $ 45,792
costs incurred during June       334,780            175,536

During June, Department L completed 69,000 units and
transferred them to Department Q.

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

Group of answer choices

$362,100

$510,316

$393,900

$264,367

$311,100

$455,042

$339,868

$408,700

Answer 1

Correct Option $311,100
Working Note:
	Actual Units
Caluclation of Physical UNITS:
Units in begining inventory	18000
Units started during the period	85000
Units to be accounted for	103000
	Actual Units	Equivalent Units
		Material	CC
Units Completed and Transferred	69000
From units in beginning inventory	18000	12960	5940
From units started	51000	51000	51000
Units in ending inventory	34000	24140	19380
Total accounted for	103000	88100	76320
Costs:
	Total	Material	CC
Costs in beginning inventory	0	0	0
Cost added dueing the year	510316	334780	175536
Total cost to account for	510316	334780	175536
Equivalent Units from above		88100	76320
Cost per equivalnet unit	6.10	3.80	2.30
	Total	Material	CC
Cost Accounted for
Units completed and transfer	0	0	0
From units in beginning inventory	62910	49248	13662
From units started	311100	193800	117300
Units in ending inventory	136306	91732	44574
Total Cost Accounted for	510316	334780	175536