Pantanal, Inc., manufactures car seats in a local factory. For costing purposes, it uses a first-in, first-out (FIFO) process costing system. The factory has three departments: Molding, Assembling, and Finishing. Following is information on the beginning work-in-process inventory in the Assembling Department on August 1:

During August, 102,000 units were transferred in from the Molding Department at a cost of $2,142,000 and started in Assembling. The Assembling Department incurred other costs of $1,164,600 in August as follows:
August Costs
Direct materials costs . . . . . . . . . . $ 939,600
Conversion costs . . . . . . . . . . . . . 225,000
Total August costs . . . . . . . . . . . $1,164,600
At the end of August, 16,000 units remained in inventory that were 90 percent complete with respect to direct materials and 50 percent complete with respect to conversion.

Required
Compute the cost of goods transferred out in August and the cost of work-in-process endinginventory.

Transcribed Image Text:

Degree of Cots Completion Work-in-process beginning inventory (10,000 units) Transferred-in from Molding Direct materials costs Conversion costs $ 98,000 164,400 61,000 $323,400 100% 60 40 Work-in-process balance (August 1)--. ..