SE 9. For work done during August, Pansey Company incurred direct materials costs of $120,000 and conversion costs of $260,000. The company employs a justin-

time operating philosophy and backflush costing. At the end of August, it was determined that the Work in Process Inventory account had been assigned $900 of costs, and the ending balance of the Finished Goods Inventory account was $1,300.

There were no beginning inventory balances. How much was charged to the Cost of Goods Sold account during August? What was the ending balance of that account?

Comparison of ABM and Lean