Pacific Ink had beginning work-in-process inventory of $587,225 on October 1. Of this amount, $312,500 was the cost of direct materials and $274,725 was the cost of conversion. The 23,500 units in the beginning inventory were 30 percent complete with respect to both direct materials and conversion costs.
During October, 47,500 units were transferred out and 20,000 remained in ending inventory. The units in ending inventory were 75 percent complete with respect to direct materials and 40 percent complete with respect to conversion costs. Costs incurred during the period amounted to $1,250,000 for direct materials and $1,556,775 for conversion.
Required:
Compute the costs of goods transferred out and the ending inventory using the weighted-average method.