(The following information applies to the questions displayed below) Pacific Ink had beginning work-in-process inventory of $985,960 on October 1. Of this amount, $412,500 was the cost of direct materials and $573,460 was the cost of conversion. The 60,000 units in the beginning inventory were 30 percent complete with respect to both direct materials and conversion costs During October, 126,000 units were transferred out and 42,000 remained in ending inventory. The units in ending inventory were 80 percent complete with respect to direct materials and 40 percent complete with respect to conversion costs. Costs incurred during the period amounted to $3,186,000 for direct materials and $3,943,680 for conversion Exercise 8.40 (Algo) Assign Costs to Goods Transferred Out and Ending Inventory: FIFO Method (LO 2,5) 0-1. Compute the cost of goods transferred out and the cost of ending inventory using the FIFO method. 2-2. Is the ending inventory higher or lower under the weighted average method compared to FIFO? Compute the cost of goods transferred out and the cost of ending inventory using the FIFO method. (D intermediate calculations.) Cost of goods transferred out Cost of ending inventory