Question

2. 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 % OF COMPLETION WORK-IN-PROCESS BEGINNING INVENTORY (8,600 UNITS) Transferred-in from Molding $136.000 100% Direct Material Costs $196,800 40% Conversion costs $73,000 45% 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: Direct Material Costs $939,600 Conversion costs $225,000 At the end of August, 18,000 units remained in inventory that were 80 percent complete with respect to direct materials and 40 percent complete with respect to conversion. Required On the provided accounting paper, prepare the Equivalent Units Section of a Production Report, IN GOOD FORM, for the Month of August 2019.

Answer 1

PANTANAL, INC.
ASSEMBLING DEPARTMENT
SCHEDULE OF EQUIVALENT UNITS-FIFO METHOD
FOR THE MONTH OF AUGUST 2019
		Equivalent Units
	Physical Units	Transferred-in from Molding	Direct Materials	Conversion Costs
Units to account for:
Beginning work in process inventory	8600
Units started during August	102000
Total units to account for	110600
Units accounted for:
Units completed during August:
From beginning work in process inventory	8600	0	5160	4730
Units started and completed during period	84000	84000	84000	84000
Total units completed during period	92600	84000	89160	88730
Units in ending work in process inventory	18000	18000	14400	7200
Total units accounted for	110600
Equivalent units		102000	103560	95930