Required Do Exercise4.22 (1) using FIFO and four decimal places for unit costs. Explain any difference between

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Required Do Exercise4.22 (1) using FIFO and four decimal places for unit costs. Explain any difference between the cost of work completed and transferred out and cost of closing work in progress in the Forming Department under the weighted-average method and the FIFO method.

Exercise4.22

Weighted-average method (25 minutes)
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 2022:image text in transcribed

Required 1 Summarise the total Forming 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 a set of summarised 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.

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Management And Cost Accounting

ISBN: 9781292436029

8th Edition

Authors: Alnoor Bhimani, Srikant Datar, Charles Horngren, Madhav Rajan

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