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 (12,000 units) Transferred-in from Molding $ 102,000 100 % Direct materials costs 160,600 60 Conversion costs 60,000 40 Work-in-process balance (August 1) $ 322,600 During August, 103,000 units were transferred in from the Molding Department at a cost of $2,039,400 and started in Assembling. The Assembling Department incurred other costs of $1,066,870 in August as follows: August Costs Direct materials costs $ 811,580 Conversion costs 255,290 Total August costs $ 1,066,870 At the end of August, 12,000 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 en

Answer 1

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