1. Using the FIFO process-costing method, do the requirements of Exercise4.24. The transferred in costs from the Forming Department for the April opening work in progress are €17 520. During April, the costs transferred in are €103 566. All other data are unchanged.

2 Explain any difference between the cost of work completed and transferred out and cost of closing work in progress in the Finishing Department under the weighted-average method and the FIFO method.

Exercise4.24

Sligo Toys Ltd manufactures wooden toy figures at its Ballinode plant. It has two departments – the Forming Department and the Finishing 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 2022 operations in the Finishing Department:

Required 

1 Summarise the total Finishing Department costs for April 2022, and assign these costs to units completed (and transferred out) and to units in closing work in progress using the weightedaverage 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:

Work in progress, 1 April* Physical units Transferred-in (toys) costs Direct materials 500 17 750 0 Conversion costs 7 250 Transferred-in during April 2.000 Completed during April 2100 Work in progress, 30 April+ 400 Costs added during April 104 000 23 100 38 400