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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

$

98,000

100

%

Direct materials costs

171,000

60

Conversion costs

63,000

50

Work-in-process balance (August 1)

$

332,000

During August, 105,000 units were transferred in from the Molding Department at a cost of $2,058,000 and started in Assembling. The Assembling Department incurred other costs of $1,039,565 in August as follows:

August Costs

Direct materials costs

$

801,040

Conversion costs

238,525

Total August costs

$

1,039,565

At the end of August, 16,000 units remained in inventory that were 80 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 ending inventory. (Do not round intermediate calculations.)

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