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 | $ | 103,000 | 100 | % | ||
Direct materials costs | 167,000 | 50 | ||||
Conversion costs | 60,000 | 50 | ||||
Work-in-process balance (August 1) | $ | 330,000 | ||||
During August, 101,000 units were transferred in from the Molding Department at a cost of $2,121,000 and started in Assembling. The Assembling Department incurred other costs of $1,069,410 in August as follows:
August Costs | |||
Direct materials costs | $ | 851,160 | |
Conversion costs | 218,250 | ||
Total August costs | $ | 1,069,410 | |
At the end of August, 17,000 units remained in inventory that were 90 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.
1. What is the cost of goods transferred out?_______
2. Cost of WIP ending inventory? _______
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started