Because of the availability of equipment and labor, Clear View has started making mass market picture frames at its Orlando, Florida plant with the excess capacity. Clear View has determined that process costing would be most appropriate for this product. Management wants to know the differences between using the Weighted Average and FIFO methods

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 Clear View 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 department's process.

Consider the following data for the assembly department in April 2014:

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

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

Summarize the total assembly department costs for April 2014, and assign them to units completed (and transferred out) and to units in ending work in process using the weighted average method.

What issues should a manager focus on when reviewing the equivalent units calculation?

Summarize the total assembly department costs for April 2014, and assign them to units completed (and transferred out) and to units in ending work in process using the FIFO method.

Explain any difference between the cost of work completed and transferred out and the cost of ending work in process in the assembly department under the weighted-average method and the FIFO method. Should Clear View's managers choose the weighted-average method or the FIFO method? Explain briefly.

I have started the first two parts

Project Part II Section I
Summarize the Flow of Physical Units and Compute Output in Equivalent Units; Weighted-Average Method of Process Costing, Assembly Department of Clear View for April 2014.
		Equivalent Units
	Physical	Direct	Conversion
Flow of Production	Units	Materials	Costs
Work in process, beginning	60
Started during current period	510
To account for	570
Completed and transferred out
during current period	450	450	450
Work in process, ending	120	120	18
Accounted for	570
Equivalent units of work done to date		570	468
Direct materials =	570
Conversion costs =	468
	Total
	Production	Direct	Conversion
	Costs	Materials	Costs
Work in process, beginning	$1,686	$1,530	$156
Costs added in current period	29,394	17,850	11,544
Total costs to account for	$31,080	$1,530	$156
Costs incurred to date	29394	$17,850	$11,544
equivalent units of work done		570	468
Cost per equivalent unit	59	$34	$25
Assignment of costs:
Completed and transferred out	26550	15300	11250
Work in process, ending	4,530	4080	450
Total costs accounted for	$31,080	$19,380	$11,700
A manager should take into account the following issues, the proper degree of the completion should be taken so that the equivalent cost per unit should not be understated. If the calculation equivalent units is correct then it also helps in stating the correct ending inventory and operating income.
Project Part II Section 2
FIFO Method
		Equivalent Units
	Physical	Direct	Conversion
Flow of Production	Units	Materials	Costs
Work in process, beginning	60
Started during current period	510
To account for	570
Completed and transferred out	60	0	36
Started and Completed	390	390	390
Work in process, ending	120	120	18
Accounted for	570
Equivalent units of work done to date		510	444
	Total
	Production	Direct	Conversion
	Costs	Materials	Costs
Work in process, beginning	$1,686
Costs added in current period	29,394
Total costs to account for	$31,080
Costs added in current period	29394	17850	11544
Equivalent Units from row 65		510	444
Cost per Equivalent Unit	61	35	26
Assignment of costs:
Completed and transferred out :
WIP Beginning Inventory
Costs added to Beginning WIP
Total from Beginning Inventory
Started and Completed
Total WIP and Transferred Out
Work in process, ending
Total costs accounted for
The following table summarizes the costs assigned to units completed and those still in process under the weighted-average and FIFO process-costing methods
	Weighted Average	FIFO	Difference
Cost of units completed and transferred out
Work in process, ending
Total costs accounted for
Explain differences