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 1999:

REQUIRED 1. Summarise the total Forming 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 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. lo1

Transcribed Image Text:

Work in progress, 1 April Started during April 1999 Completed during April 1999 Work in progress, 30 April Costs added during April 1999 PHYSICAL UNITS (TOYS) DIRECT MATERIALS CONVERSION COSTS 300 EUR 7,500 EUR 2,125 2,200 2,000 500 EUR 70,000 EUR 42,500 *Degree of completion: direct materials, 100%; conversion costs, 40%. + Degree of completion: direct materials, 100%; conversion costs, 25%.