Saline Solutions uses process costing to account for production of
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 60% 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
Beginning inventory (50,000 units, 30% complete with respect to Department S costs)
Total cost (Department R and Department S) cost: Beginning inventory..... $ 482,424
Current work (490,000 units started)
Department R costs ..................................................................................... $3,449,600
Department S costs ..................................................................................... 1,594,376
The ending inventory has 70,000 units, which are 100 percent complete for Department R costs.

Required
a. Assume that Saline Solutions used weighted-average process costing and that the cost per equivalent unit for May for materials in Department S is $7.20 and for conversion costs it is $3.20. How complete is ending inventory with respect to conversion costs?
b. What is the cost of product transferred out of Department S for May?
c. What is the cost of ending inventory in Department S for May?

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