1. 18-41. WEIGHTED-AVERAGE METHOD. McKnight Handcraft is a manufacturer of picture frames for large retailers. Every picture frame passes through two departments: the assembly department and the finishing department. This problem focuses on the assembly department. The process-costing system at McKnight has a single direct-cost category (direct materials) and a single indirect-cost category (conversion costs). Direct materials are added when the assembly department process is 10% complete. Conversion costs are added evenly during the assembly departments process.
   1. McKnight uses the weighted-average method of process costing. Consider the following data for the assembly department in April 2020:

• Required
  1. 1. Summarize total assembly department costs for April 2020, and assign them to units completed (and transferred out) and to units in ending work-in-process inventory.
  2. 2. What issues should a manager focus on when reviewing the equivalent units calculation?
• 18-42. FIFO METHOD (CONTINUATION OF 18-41).
• Required
  1. 1. Complete Problem 18-41 using the FIFO method of process costing.
  2. 2. If you did Problem 18-41, explain any difference between the cost of work completed and transferred out and the cost of ending work-in-process inventory in the assembly department under the weighted-average method and the FIFO method. Should McKnights managers choose the weighted-average method or the FIFO method? Explain briefly.

a Degree of completion: direct materials, 100%; conversion costs, 40%. b Degree of completion: direct materials, 100%; conversion costs, 15%