Transferred-in costs, weighted-average (related to 4-21 and 4-22).

(0 minutes) Sligo Toys Ltd manufactures wooden toy figures at its Ballinode plant. It has two departments—the Forming Department and the Finishing Department. (Problems 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 1999 operations in the Finishing Department:

REQUIRED 1. Summarise the total Finishing Department costs for April 1999, and assign these costs to units completed (and transferred out) and to units in ending 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. lol

Transcribed Image Text:

Work in progress, 1 April Transferred-in during April 1999 PHYSICAL UNITS TRANSFERRED-IN (TOYS) COSTS DIRECT MATERIALS CONVERSION COSTS 500 EUR 17,750 EUR OF EUR 7,250 2,000 Completed during April 1999 2,100 Work in progress, 30 April 400 Costs added during April 1999 EUR 104.000 EUR 23,100 EUR 38,400 Degree of completion: transferred-in costs, 100%; direct materials, 0%; conversion costs, 60%. 1 Degree of completion: transferred-in costs, 100%; direct materials, 0%, conversion costs, 30%.