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 (8,000 units) | ||||||
Transferred-in from Molding | $ | 99,000 | 100 | % | ||
Direct materials costs | 171,200 | 60 | ||||
Conversion costs | 63,000 | 30 | ||||
Work-in-process balance (August 1) | $ | 333,200 | ||||
During August, 100,000 units were transferred in from the Molding Department at a cost of $2,010,000 and started in Assembling. The Assembling Department incurred other costs of $958,320 in August as follows:
August Costs | |||
Direct materials costs | $ | 833,320 | |
Conversion costs | 125,000 | ||
Total August costs | $ | 958,320 | |
At the end of August, 14,000 units remained in inventory that were 80 percent complete with respect to direct materials and 60 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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