17 38 Transferred in costs, weighted average method Bookworm, Inc , has two departments printing and binding Each department has one direct cost category (direct materials) and one indirect cost category (conversion costs) This problem focuses on the binding department Books that have undergone the printing process are immediately transferred to the binding department Direct material is added when the binding process is 80 complete Conversion costs are added evenly during binding operations When those operations are done, the books are immediately transferred to Finished Goods Bookworm, Inc , uses the weighted average method of process costing The following is a summary of the April 2012 operations of the binding department Physical Units (books) Transferred In Costs Direct Materials Conversion Costs Beginning work in process 1,050 $ 32,550 $ 0 $13,650 Degree of completion, beginning work in process 100 0 50 Transferred in during April 2012 2,400 Completed and transferred out during April 2,700 Ending work in process (April 30) 750 Degree of completion, ending work in process 100 0 70 Total costs added during April $129,600 $23,490 $70,200 1 Prepare journal entries for April transfers from the printing department to the binding department and from the binding department to Finished Goods 17 39 Transferred in costs, FIFO method Refer to the information in Problem 17 38 Suppose that Bookworm, Inc , uses the FIFO method instead of the weighted average method in all of its departments The only changes to Problem 17 38 under the FIFO method are that total transferred in costs of beginning work in process on April 1 are $36,750 (instead of $32,550) and that total transferred in costs added during April are $124,800 (instead of $129,600) Required 1 Using the FIFO process costing method, complete Problem 17 38 2 If you did Problem 17 38, explain any difference between the cost of work completed and transferred out and the cost of ending work in process in the binding department under the weighted average method and the FIFO method

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17-38 Transferred-in costs, weighted-average method. Bookworm, Inc., has two departments: printing and binding. Each department has one direct-cost category (direct materials) and one indirect-cost category

17-38 Transferred-in costs, weighted-average method. Bookworm, Inc., has two departments: printing and binding. Each department has one direct-cost category (direct materials) and one indirect-cost category (conversion costs). This problem focuses on the binding department. Books that have undergone the printing

process are immediately transferred to the binding department. Direct material is added when the binding process is 80% complete. Conversion costs are added evenly during binding operations. When those operations are done, the books are immediately transferred to Finished Goods. Bookworm, Inc., uses the weighted-average method of process costing. The following is a summary of the April 2012 operations of the binding department:

	Physical Units (books)	Transferred-In Costs	Direct Materials	Conversion Costs
Beginning work in process	1,050	$ 32,550	$ 0	$13,650
Degree of completion, beginning work in process		100%	0%	50%
Transferred in during April 2012	2,400
Completed and transferred out during April	2,700
Ending work in process (April 30)	750
Degree of completion, ending work in process		100%	0%	70%
Total costs added during April		$129,600	$23,490	$70,200

1. Prepare journal entries for April transfers from the printing department to the binding department and from the binding department to Finished Goods.

17-39 Transferred-in costs, FIFO method. Refer to the information in Problem 17-38. Suppose that Bookworm, Inc., uses the FIFO method instead of the weighted-average method in all of its departments.

The only changes to Problem 17-38 under the FIFO method are that total transferred-in costs of beginning work in process on April 1 are $36,750 (instead of $32,550) and that total transferred-in costs added during April are $124,800 (instead of $129,600).

Required

1. Using the FIFO process-costing method, complete Problem 17-38.

2. If you did Problem 17-38, explain any difference between the cost of work completed and transferred out and the cost of ending work in process in the binding department under the weighted-average method and the FIFO method.