Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions