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 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 $ 98,000 100 % Direct materials costs 171,000 60 Conversion costs 63,000 50 Work-in-process balance (August 1) $ 332,000 During August, 105,000 units were transferred in from the Molding Department at a cost of $2,058,000 and started in Assembling. The Assembling Department incurred other costs of $1,039,565 in August as follows: August Costs Direct materials costs $ 801,040 Conversion costs 238,525 Total August costs $ 1,039,565 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.)

Answer 1