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Pantanal, Inc. - Process Costing- FIFO

See the attachment.
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 $ 94,000 100%
Direct materials costs 170,800 50
Conversion costs 63,000 40
Work-in-process balance (August 1) $327,800
During August, 105,000 units were transferred in from the Molding Department at a cost of
$2,152,500 and started in Assembling. The Assembling Department incurred other costs of $1,269,500
in August as follows:
August Costs
Direct materials costs $ 932,450
Conversion costs 337,050
Total August costs $1,269,500
At the end of August, 13,000 units remained in inventory that were 90 percent complete with respect
to direct materials and 60 percent complete with respect to conversion.
Compute the cost of goods transferred out in August and the cost of work-in-process ending inventory.
(Round the unit costs for prior department costs, materials, and conversion to 2 decimals and the
final answers to the nearest dollar amount. Omit the "$" sign in your response.)
Cost of goods transferred out $ 0
Cost of WIP ending inventory $ 0.


Solution Summary

The solution discusses process costing for Pantanal Inc.