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.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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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