Question
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
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: |
Costs | Degree of Completion | |||||
Work-in-process beginning inventory (9,000 units) | ||||||
Transferred-in from Molding | $ | 96,000 | 100 | % | ||
Direct materials costs | 173,800 | 70 | ||||
Conversion costs | 59,000 | 50 | ||||
Work-in-process balance (August 1) | $ | 328,800 | ||||
During August, 100,000 units were transferred in from the Molding Department at a cost of $2,100,000 and started in Assembling. The Assembling Department incurred other costs of $1,017,015 in August as follows: |
August Costs | |||
Direct materials costs | $ | 760,760 | |
Conversion costs | 256,255 | ||
Total August costs | $ | 1,017,015 | |
At the end of August, 13,000 units remained in inventory that were 80 percent complete with respect to direct materials and 40 percent complete with respect to conversion. |
Required: |
Compute the cost of goods transferred out in August and the cost of work-in-process ending inventory. (Round intermediate calculations to 2 decimal places.) |
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