Details of this Paper

Pantanal, Inc., manufactures car seats in a local...

Description

Solution


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 (10,000 units) Transferred-in from Molding $ 99,000 100 % Direct materials costs 170,800 70 Conversion costs 57,000 40 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Work-in-process balance (August 1) $ 326,800 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- During August, 105,000 units were transferred in from the Molding Department at a cost of $2,163,000 and started in Assembling. The Assembling Department incurred other costs of $1,073,270 in August as follows: August Costs Direct materials costs $ 933,680 Conversion costs 139,590 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Total August costs $ 1,073,270 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- At the end of August, 19,000 units remained in inventory that were 90 percent complete with respect to direct materials and 60 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. (Round the unit costs for prior department costs, materials, and conversion to 2 decimals and the final answers to the nearest dollar amount. Omit the "$" sign in your response.) Cost of goods transferred out $ Cost of WIP ending inventory $

 

Paper#9607 | Written in 18-Jul-2015

Price : $25
SiteLock