Sligo Toys Ltd manufactures one type of wooden toy figure. It buys wood as its direct material for the Forming Department of its Ballinode plant. The toys are transferred to the Finishing Department, where they are hand-shaped and metal is added to them. Sligo Toys uses the weighted-average method of process costing. Consider the following data for the Forming Department in April 2007:

* Degree of completion: direct materials, 100%; conversion costs, 40%.
† Degree of completion: direct materials, 100%; conversion costs, 25%.
Required
1. Summaries the total Forming Department costs for April 2007, and assign these costs to units completed (and transferred out) and to units in closing work in progress using the weighted-average method.
2. Prepare a set of summarized journal entries for all April transactions affecting Work in Progress - Forming. Set up a T-account for Work in Progress - Forming and post the entries to it.

Transcribed Image Text:

Physical units (missiles) Direct materials Conversion costs Work in progress, 1 April" Started during April 2007 Completed during April 2007 Work in progress, 30 April Costs added during April 2007 E7 500 2 125 300 2200 2000 500 E42500