In: Accounting
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 (12,000 units) | ||||||
Transferred-in from Molding | $ | 98,000 | 100 | % | ||
Direct materials costs | 163,200 | 60 | ||||
Conversion costs | 64,000 | 50 | ||||
Work-in-process balance (August 1) | $ | 325,200 | ||||
During August, 97,000 units were transferred in from the Molding Department at a cost of $1,901,200 and started in Assembling. The Assembling Department incurred other costs of $999,670 in August as follows:
August Costs | |||
Direct materials costs | $ | 709,920 | |
Conversion costs | 289,750 | ||
Total August costs | $ | 999,670 | |
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.)