Reference no: EM132567246

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: Moulding, Assembling, and Finishing.

Following is information on the beginning work-in-process inventory in the Assembling Department on August 1:

                                                                         Cost                  Degree of completion

Work-in-process beginning inventory (12,500 units)

-Transferred-in from Moulding                    $ 98,000                    100%

-Direct materials costs                              164,400                   60%

-Conversion costs                                       61,000                  40%

Work-in-process balance (August 1) $323,400

During August, 127,500 units were transferred in from the Moulding Department at a cost of $2,142,000 and started in Assembling. The Assembling Department incurred other costs of $1,164,600 in August as follows:

August Costs

Direct Material Costs $939,600

Conversion Costs 225,000

Total August Costs $1,164,600

At the end of August, 20,000 units remained in inventory that were 90 percent complete with respect to direct materials and 50 percent complete with respect to conversion.

Required

Question 1: Compute the cost of goods transferred out in August and the cost of work-in-process ending inventory.