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.

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

Group of answer choices

$157,590

$256,814

$193,818

$168,486

$207,400

$170,448

$265,472

$136,306

Answer 1

answer:$136306(explanation below)

Equivalent unit of production under FIFO METHOD

Particular	material	conversion
Units completed and transferred out 69000 units
Beginning inventory 18000units	(18000×72%) 12960	(18000×33%) 5940
Units started during the month (69000-18000)51000units	(51000×100%) 51000	(51000×100%) 51000
Ending inventory	(34000×71%) 24140	(34000×57%) 19380
Total Equivalent unit	88100	76320

Cost per Equivalent unit

Particular	material	conversion
a)Cost added during the month	$334780	$175536
b)Equivalent unit	88100	76320
Cost per Equivalent unit (a/b)	$3.8	$2.3

Cost of ending inventory

Material =24140×$3.8=$91732

​​​ Conversion=19380×$2.3=$44574

total cost of ending inventory = $91732+$44574 = $136306

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