Sligo Toys Ltd manufactures wooden toy figures at its Ballinode plant. It has two departments - the Forming Department and the Finishing Department. (Exercises 4.21 and 4.22 focused on the Forming Department.) Consider now the Finishing Department, which processes the formed toys through hand-shaping and the addition of metal. For simplicity here, suppose all additional direct materials are added at the end of the process. Conversion costs are added evenly during Finishing operations. Sligo Toys uses the weighted-average method of process costing. The following is a summary of the April 2007 operations in the Finishing Department:

* Degree of completion: transferred-in costs, 100%; direct materials, 0%; conversion costs, 60%.
€  Degree of completion: transferred-in costs, 100%; direct materials, 0%; conversion costs, 30%.
Required
1. Summaries the total Finishing 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 journal entries for April transfers from the Forming Department to the Finishing Department and from the Finishing Department to Finished Goods.

Transcribed Image Text:

Physical units Transferred Direct (toys) 500 2000 in costs materialscosts 17750 Work in progress, 1 April" Transferred-in during EO E7 250 April 2007 Completed during April 2007 Work in progress, 30 Aprilt Costs added during April 2007 2100 400 104000 23 100 638 400