Fancy Faucets Inc. make a single product, a decorative plumbing device which is made in two processes: forging and finishing. The forging process produces the basic component from molten metal at the start of the process in batches of 12. At the end of this process, the forgings are inspected, and on average two of the forgings are found to be defective and must be discarded. In the finishing department, the basic components are first cleaned and 'frazed'. At the half-way stage in this department, additional materials are introduced, and the product is completed by assembly and polishing. Conversion costs are incurred evenly throughout both processes.

The following data applies to April 19XO:

FORGING FINISHING Units Units Work-in-process 1 April 19XO 15000 20000

(2/3 complete) (3/4 complete)

Materials $45000 $18000 Transferred in costs $97000 Conversion costs $20000 $30000 Cost incurred Materials $270000 77000 Conversion costs $163000 130000 Units Units Units started 90000 72000 Work-in-process 30 April 19XO 18000 16000

(1 /4 complete)

Completed output 72000 76000

(transferred to (transferred to finishing) warehouse)

REQUIRED Calculate the values of the work-in-process at 30 April 19XO and of output transferred to the warehouse during Aprii-19XO using either the FIFO or weighted average method.