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Pantanal, Inc. - Process Costing- FIFO

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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 $1,269,500
At the end of August, 13,000 units remained in inventory that were 90 percent complete with respect
to direct materials and 60 percent complete with respect to conversion.
Required:
Compute the cost of goods transferred out in August and the cost of work-in-process ending inventory.
(Round the unit costs for prior department costs, materials, and conversion to 2 decimals and the
final answers to the nearest dollar amount. Omit the "$" sign in your response.)
Cost of goods transferred out $ 0
Cost of WIP ending inventory $ 0.

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The solution discusses process costing for Pantanal Inc.

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