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 Answer = Option #5: $ 311,100 = Cost of Goods started and completed.

Cost of Units started & completed this period:	EUP	Cost per EUP	Total Cost
- Direct Materials	51,000.00	3.80	193,800.00
- Conversion	51,000.00	2.30	117,300.00
Total costs started & Completed this period			311,100.00

· Workings

EUP - FIFO Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units of ENDING WIP	34,000	71.0%	24,140	57.0%	19,380
Units STARTED & COMPLETED	51,000	100%	51,000	100%	51,000
Units of beginning WIP	18,000	72.00%	12,960	33%	5,940
Equivalent Units of Production			88,100		76,320
COST per EUP			Material		Conversion
Cost incurred this period			$       334,780.00		$                  175,536.00
Total Costs		Costs	$       334,780.00	Costs	$                  175,536.00
Equivalent units of production		EUP	88,100	EUP	76,320
Cost per EUP			$                3.8000		$                          2.3000