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 | $ | 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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