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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). 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. 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 Transferred-In Direct Conversion Units Costs Materials Costs (books) Beginning work in 1,050 $32,550 $0 $13,650 process 100% 0% 50% Degree of completion, beginning work in process Transferred in during 2,400 April 2012 Completed and 2,700 transferred out during April Ending work in process 750 (April 30) Degree of completion, 100% 0% 70% ending work in process Total costs added $129,600 $23,490 $70,200 during April 1. Summarize total binding department costs for April 2012, and assign these costs to units completed and transferred out) and to units in ending work in process. 2. Prepare journal entries for April transfers from the printing department to the binding department and from the binding department to Finished Goods