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 $ 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

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions