QUESTION 1 Thai Company produces expensive handbags. Thai Company has two departments that process all the handbags, Tanning and Finishing. Conversion costs are added evenly throughout both the production processes. Direct materials are added at the beginning of the Tanning process and 40% of the way through the Finishing process. During January, the beginning work in process in the Tanning department was 40% complete for conversion costs and 100% complete for direct materials. The beginning inventory included $9,000 for materials and $12,000 for conversion costs. Ending work-in-process inventory in the Tanning department was 50% complete. Beginning work in process in the Finishing department was 60% complete as to conversion. Beginning inventories included $9,000 for transferred-in costs, $8000 for direct materials and $12,000 for conversion costs. Direct materials of $15,000 and Conversion costs of $21,000 were added in the Finishing department. Ending work-in-process inventory was 30% complete. Additional information about the two departments follows: Additional information about the two departments follows: Tanning 5,000 24,000 20,000 Finishing 4,000 Beginning work-in-process units Units started this period Units transferred out this period Ending work-in-process units ? 18,000 6,000 ? Material costs added Conversion costs Transferred-out cost $18,000 $32,000 $50,000 $15,000 $21,000 ? b. Prepare the accounting journal entries to record the transactions affecting work-in-process of the Finishing Department for the period. (4 marks) c. What is the difference between a weighted average method of process costing and a first-in, first-out method of process costing? Identify an advantage of FIFO for planning and control