Problem 8-60 (Algo) FIFO Process Costing (LO 8-4, 5) 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 (11,000 units)             Transferred-in from Molding $ 97,000     100 % Direct materials costs   163,600     70   Conversion costs   66,000     50   Work-in-process balance (August 1) $ 326,600             During August, 102,000 units were transferred in from the Molding Department at a cost of $2,111,400 and started in Assembling. The Assembling Department incurred other costs of $1,028,920 in August as follows:     August Costs Direct materials costs $ 845,770   Conversion costs   183,150   Total August costs $ 1,028,920       At the end of August, 17,000 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.)

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Problem 8-60 (Algo) FIFO Process Costing (LO 8-4, 5)

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 (11,000 units)            
Transferred-in from Molding $ 97,000     100 %
Direct materials costs   163,600     70  
Conversion costs   66,000     50  
Work-in-process balance (August 1) $ 326,600        
 

 

During August, 102,000 units were transferred in from the Molding Department at a cost of $2,111,400 and started in Assembling. The Assembling Department incurred other costs of $1,028,920 in August as follows:

 

  August Costs
Direct materials costs $ 845,770  
Conversion costs   183,150  
Total August costs $ 1,028,920  
 

 

At the end of August, 17,000 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.)

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