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Use the FIFO Method to assign costs. Pirate Manufacturing Company is a maker of plastic figurine collectibles for the sports and entertainment industries, and they use process costing (FIFO Method to assign cost flows).

Pirate Manufacturing produces their goods by having them pass through a molding process and then through an assembly process.Information related to its manufacturing activities for the month July are as follows:

CoursHeroTranscribedText: Raw Materials Molding Department Beginning inventory S 100,000 Beginning work in process inventory (units) 5,000 Raw materials purchased on credit 300,000 Percentage completed - Materials 100% Direct materials - Molding (190,000) Percentage completed - Labor and overhead 60% Direct materials - Assembly (88,600) Units started and completed 17,000 Indirect materials used (51,400) Ending work in process inventory (units) 8,000 Ending inventory S 70,000 Percentage completed - Materials 100% Percentage completed - Labor and overhead 25% Factory Payroll Costs Direct labor - Molding S 42,000 Beginning work in process inventory S 53,000 Direct labor - Assembly 55,375 Direct materials added 190,000 Indirect labor used 50,625 Direct labor added 42,000 Total payroll cost (paid in cash) S 148,000 Overhead applied (150% of direct labor) 63,000 Total costs S 348,000 Manufacturing Overhead Indirect materials used S 51,400 Assembly Department Indirect labor used 50,625 Beginning work in process inventory $ 154,800 Other overhead costs 71,725 Ending work in process inventory 108,325 Total manufacturing overhead incurred $ 173,750 Finished Goods Inventory Factory Overhead Applied Beginning inventory S 96,400 Molding (150% of direct labor) S 63,000 Cost transferred in from assembly 578,400 Assembly (200% of direct labor) 110,750 Cost of goods sold 506,100 Total manufacturing overhead applied $ 173,750 Ending inventory $ 168,700

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