Refer to the information in Problem 8-54. Department R uses FIFO process costing to account for production. In January, beginning work-in-process inventory consisted of 50,000 units, 80 percent complete with respect to conversion. The cost of rubber pellets put in production in January was $2,350,000. The cost of thinner introduced into production in January was $1,057,500. Reported costs per equivalent unit for January were $5 per equivalent unit of rubber pellets and $2.25 per equivalent unit for thinner.

Information from Problem 8-54

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

Based on the information available, the ending work-in-process inventory in January was:

a. At least 60 percent complete with respect to conversion cost.

b. Less than 60 percent complete with respect to conversion cost.

c. Exactly 60 percent complete with respect to conversion cost.

d. There is not enough information to determine the degree of completion.