Question: For work done during August, Pansey Company incurred direct materials costs of $120,000 and conversion costs of $260,000. The company employs a just-in-time operating philosophy
For work done during August, Pansey Company incurred direct materials costs of $120,000 and conversion costs of $260,000. The company employs a just-in-time operating philosophy and back-flush costing. At the end of August, it was determined that the Work in Process Inventory account had been assigned $900 of costs, and the ending balance of the finished Goods Inventory account was $1,300. There were no beginning inventory balances. How much was charged to the Cost of Goods Sold account during August? What was the ending balance of that account?
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