Porter Handcraft is a manufacturer of picture frames for large retailers. Every picture frame passes through two departments: assembly and finishing. This problem focuses on the assembly department. The process-costing system at Porter has a single 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.

Porter uses the weighted-average method of process costing. Consider the following data for the assembly department in April 2015:

Physical Units (frames) Direct Materials Conversion Costs

Work in process, April 1* 75 $1,775 $135

Started during April 2015 550

Completed during April 2015 500

Work in process, April 30^ 125

Costs added during April 2015 $17,600 $10,890

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

^ Degree of completion: direct materials, 100%; conversion costs, 20%

Required:

Summarize the total assembly department costs for April 2015, and assign total costs to units completed (and transferred out) and to units in ending work in process.

2) Prepare a set of summarized journal entries for all April transactions affecting Work in Process-Assembly. Set up a T-account for Work-in-Process-Assembly and post the entries to it.

Using the same information as outlined above, answer the requirements in 1) above using the FIFO method of process costing. 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.