Question
Process Costing weighted average and FIFO Haines Mirrors Haines Mirrors Pty Ltd manufactures mirrors. The mirrors are manufactured in the Forming Department and then are
Process Costing weighted average and FIFO
Haines Mirrors Haines Mirrors Pty Ltd manufactures mirrors. The mirrors are manufactured in the Forming Department and then are transferred to the Coating Department where they are silvered and polished. Mirrors are then complete and are transferred out to finished goods. The following information relates to the Forming Department for June 2017. The material is added at the beginning of the forming process, and conversion costs are incurred uniformly throughout the process. At the commencement of June, there were 7,000 mirrors in work in process, 40% complete. Costs incurred to 1st June were $91,000 for materials and $29,400 for conversion costs. 15,000 new mirrors were started during the period. Ending inventory was 6,000 mirrors, 30% complete. Costs incurred during the period were $195,000 for materials and $157,500 for conversion costs.
Required: Determine the cost of the mirrors transferred to the Coating Department in June, and also cost of the Forming Department ending Work in Progress at the end of June using: a) the Weighted Average costing assumption b) the FIFO assumption
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