Costing ending inventory using both FIFO and average costing A diversified consumer products company, Riverton Industries, makes a wide array of winter sports products in its Vail Division. A particularly popular product is its Evergreen downhill ski boot. It is manufactured in a continuous flow production process accounted for in five process centers. In the last. Laminat- ing, the boot lacing framework is sewn and the boots are sealed, checked for defects, and boxed for shipment to customers.

September production and cost data for the Laminating process center are as follows. Beginning work in process was 2,000 units with materials complete and conversion 25 percent complete. Beginning inventory costs consisted of $34,000 for preceding department costs, $8,000 for direct materials, and $3,275 for conversion. During September 8,000 units were transferred in from the preceding process center with a cost of $152,000. September direct materials costs were $40,000 in Laminating and conversion costs were $52,725. There were 7,000 units completed and transferred to finished goods inventory during the month. The units in ending inventory had all materials and were 1/3 converted.

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REQUIRED a. Compute the cost of ending work in process in Laminating on September 30 using FIFO cost flows. b. Compute the cost of ending work in process in Laminating on September 30 using weighted average cost flows.