Costing Methods Concrete Creations manufactures concrete bird baths that are sold through retail outlets nationwide The bird baths are made in a two staged process In the Forming Deartment, the concrete is poured into silicone molds where it is allowed to cure and set Once set, the bird baths are removed from the mold and sent to the Finishing Department where any imperfections are removed and the bird baths are sprayed with a special sealant Information for the Forming Department for the month of May is provided below Percent Complete Units Material Conversion Work in Process, Beginning 10,000 100 60 Started into Production 90,000 Completed and Transferred Out 80,000 Work in Process, Ending 20,000 100 40 Materials Conversion Work in Process, Beginning $ 12,600 $ 12,400 Cost added during period $ 167,400 119,350 Questions Assume that Concrete Creations uses the weighted average method for cost allocation Determine the equivalent units of production for the Forming Department for the month of May Assume that Concrete Creations uses the weighted average method for cost allocation Compute the cost per equivalent units of production for the Forming Department Assume that Concrete Creation uses the weighted average method for cost allocation Calculate the total cost of ending work in process inventory as well as total cost of units transferred out for May Assume that Concrete Creations uses the weighted average method for cost allocation Make a cost reconciliation report for the Forming Department for May Assume that Concrete Creations used the FIFO method rather than the weighted average method in its process costing system Determine the equivalent units for the Forming Department for the month of May Assume that Concrete Creations used the FIFO method rather than the weighted average method in its process costing system Compute the cost per equivalent units of production for the Forming Department Assume that Concrete Creations used the FIFO method rather than the weighted average method in its process costing system Calculate the total cost of ending work in process inventory as well as total cost of units transferred out for May Assume that Concrete Creations used the FIFO method rather than the weighted average method in its process costing system Make a cost reconciliation report for the Forming Department for May Compare the two cost reconciliation reports (weighted average and FIFO) Identify and comment on any significant differences between the two reports If you were a manager at Concrete Creations, which approach would you recommend and why Be sure to identify the advantages and disadvantages to both approaches when making your analysis

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Costing Methods Concrete Creations manufactures concrete bird baths that are sold through retail outlets nationwide. The bird baths are made in a two-staged process. In

Costing Methods

Concrete Creations manufactures concrete bird baths that are sold through retail outlets nationwide. The bird baths are made in a two-staged process. In the Forming Deartment, the concrete is poured into silicone molds where it is allowed to cure and set. Once set, the bird baths are removed from the mold and sent to the Finishing Department where any imperfections are removed and the bird baths are sprayed with a special sealant.

Information for the Forming Department for the month of May is provided below:

Percent Complete

Units Material Conversion

Work in Process, Beginning 10,000 100% 60%

Started into Production 90,000

Completed and Transferred Out 80,000

Work in Process, Ending 20,000 100% 40%

Materials Conversion

Work in Process, Beginning $ 12,600 $ 12,400

Cost added during period $ 167,400 119,350

Questions

Assume that Concrete Creations uses the weighted-average method for cost allocation. Determine the equivalent units of production for the Forming Department for the month of May.
Assume that Concrete Creations uses the weighted-average method for cost allocation. Compute the cost per equivalent units of production for the Forming Department.
Assume that Concrete Creation uses the weighted-average method for cost allocation. Calculate the total cost of ending work in process inventory as well as total cost of units transferred out for May.
Assume that Concrete Creations uses the weighted-average method for cost allocation. Make a cost reconciliation report for the Forming Department for May.
Assume that Concrete Creations used the FIFO method rather than the weighted average method in its process costing system. Determine the equivalent units for the Forming Department for the month of May.
Assume that Concrete Creations used the FIFO method rather than the weighted average method in its process costing system. Compute the cost per equivalent units of production for the Forming Department.
Assume that Concrete Creations used the FIFO method rather than the weighted average method in its process costing system. Calculate the total cost of ending work in process inventory as well as total cost of units transferred out for May.
Assume that Concrete Creations used the FIFO method rather than the weighted average method in its process costing system. Make a cost reconciliation report for the Forming Department for May.
Compare the two cost reconciliation reports (weighted average and FIFO). Identify and comment on any significant differences between the two reports. If you were a manager at Concrete Creations, which approach would you recommend and why? Be sure to identify the advantages and disadvantages to both approaches when making your analysis.