Cougar Company utilizes a Process Costing system and is providing you with information related to its painting department. The Company is looking to report its Cost of Goods Sold using the FIFO Method of Process Costing. Cougar Company provides you with the following information related to its Equivalent Units:
Units % Complete Equivalent Units
Direct Materials Conversion Costs Direct Materials Conversion Costs
Beginning WIP 50,000 90% 90% 45,000 45,000
+ Units Started 90,000
FIFO Equiv Units 95,000 87,000
Total Units 140,000
W. Avg Equiv Units 140,000 132,000
(-) Units C/TO 100,000 100% 100% 100,000 100,000
Ending WIP 40,000 100% 80% 40,000 32,000
Cougar Company also provides you with the following detail of its Work-in-Process Inventory:
Direct Materials Conversion Costs Total
Work-in-Process July 1st $52,000 $87,000 $139,000
Costs Added during July $190,000 $417,600 $607,600
Work-in-Process July 31st $67,000 $72,000 $139,000
Calculate Cougar Company's Cost of Goods Completed/Transferred-Out of the painting department using the FIFO Method for the period noted.