Refer to the data forDurall Companyin Case 4-20. Assume that the company uses the FIFO

method in its process costing system.

Required:

1. Rely on the report for the Forming Department for October showing how much cost should have

been assigned to the units completed and transferred to the Stamping Department and to the

ending work in process inventory.

2.Assume that in order to remain competitive, the company undertook a major cost-cutting

program during October. Would the effects of this cost-cutting program tend to show up more

under the weighted-average method or under the FIFO method? Explain your answer.