FIFO Process Costing Pantanal, Inc., manufactures car seats in a local factory. For costing purposes, it uses a Ã¯Â¬Ârst-in, Ã¯Â¬Ârst-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:
During August, 102,000 units were transferred in from the Molding 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:
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At the end of August, 16,000 units remained in inventory that were 90 per cent complete with respect to direct materials and 50 per cent complete with respect to conversion.ÃÂ ÃÂ
ÃÂ RequiredÃÂ ÃÂ Compute the cost of goods transferred out in August and the cost of work-in-process endingÃÂ inventory.ÃÂ