Requirement 1. Summarize total assembly department costs for April 2020, and assign them to units completed (and transferred out) and to units in ending work in process inventory. Segin by calculating the physical units and equivalent units. (For amounts with a 0 balance, make sure to enter "0" in the appropriate cell.) Requirement 2. Explain any difference between the cost of work completed and transferred out and the cost of ending work in process inventory in the assembly department under the weighted-average method and the FIFO method. Should Marzollo's managers choose the weighted-average method or the FIFO method? Explain briefly. Explain any difference between the cost of work completed and transferred out and the cost of ending work in process inventory in the assembly department under the weighted-average method and the FIFO method. The FIFO ending work in process inventory is than the weighted-average ending inventory. This is because FIFO assumes that all the in work in process are the first to be completed and transferred out while ending work in process consists of only the The weighted-average method by assuming that are completed and transferred out, while in beginning work in process are placed in ending work in process. Hence, in this case, the weighted-average method results in a cost of units completed and transferred out and a ending work-in-process inventory relative to FIFO. Should Marzollo's managers choose the weighted-average method or the FIFO method? Explain briefly. Marzollo Handcraft is a manufacturer of picture frames for large retailers. Every picture frame passes through two departments: the assembly department and the finishing department. This problem focuses on the assembly department. The process-costing system at Marzollo has a single direct-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 department's process. Marzollo uses the FIFO method of process costing. Consider the following data for the assembly department in April 2020: (Click the icon to view the data.) (Click the icon to view the total costs assigned under the weighted-average method.) Data table Reference Completed and transferred out during current period: From beginning work in process Started and completed Work in process, ending Accounted for Equivalent units of work done in current period Now summarize total costs to account for. Should Marzollo's managers choose the weighted-average method or the FIFO method? Explain briefly. Begin by completing the table below that summarizes the costs assigned to units completed and those still in process under the weighted-average and FIFO process-costing methods. Given the relatively small difference in the income numbers generated by the two methods, Marzollo's managers would likely If the differences are expected be larger in future years, the managers should choose the method that will Marzollo's operating income and taxes. They may have an incentive, however, to use the alternate method in or to obtain higher levels of income-based compensation or if there are debt covenants that would be violated by showing income. One advantage of the FIFO method worth considering is that provides better information for managing the business because it keeps Next calculate cost per equivalent unit for direct materials and conversion costs. Assign total costs to units completed (and transferred out) and to units in ending work in process inventory. Begin by calculating the total from beginning inventory, then calculate the total costs accounted for. (For amounts with a 0 balance, make sure to enter " 0 " in the appropriate cell.) \begin{tabular}{l} Production Costs \\ \hline Completed and transferred out: \\ \hline Total costs of units completed and transferred out \\ \hline Total from beginning inventory \\ \hline Total costs accounted for \end{tabular} Requirement 1. Summarize total assembly department costs for April 2020, and assign them to units completed (and transferred out) and to units in ending work in process inventory. Segin by calculating the physical units and equivalent units. (For amounts with a 0 balance, make sure to enter "0" in the appropriate cell.) Requirement 2. Explain any difference between the cost of work completed and transferred out and the cost of ending work in process inventory in the assembly department under the weighted-average method and the FIFO method. Should Marzollo's managers choose the weighted-average method or the FIFO method? Explain briefly. Explain any difference between the cost of work completed and transferred out and the cost of ending work in process inventory in the assembly department under the weighted-average method and the FIFO method. The FIFO ending work in process inventory is than the weighted-average ending inventory. This is because FIFO assumes that all the in work in process are the first to be completed and transferred out while ending work in process consists of only the The weighted-average method by assuming that are completed and transferred out, while in beginning work in process are placed in ending work in process. Hence, in this case, the weighted-average method results in a cost of units completed and transferred out and a ending work-in-process inventory relative to FIFO. Should Marzollo's managers choose the weighted-average method or the FIFO method? Explain briefly. Marzollo Handcraft is a manufacturer of picture frames for large retailers. Every picture frame passes through two departments: the assembly department and the finishing department. This problem focuses on the assembly department. The process-costing system at Marzollo has a single direct-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 department's process. Marzollo uses the FIFO method of process costing. Consider the following data for the assembly department in April 2020: (Click the icon to view the data.) (Click the icon to view the total costs assigned under the weighted-average method.) Data table Reference Completed and transferred out during current period: From beginning work in process Started and completed Work in process, ending Accounted for Equivalent units of work done in current period Now summarize total costs to account for. Should Marzollo's managers choose the weighted-average method or the FIFO method? Explain briefly. Begin by completing the table below that summarizes the costs assigned to units completed and those still in process under the weighted-average and FIFO process-costing methods. Given the relatively small difference in the income numbers generated by the two methods, Marzollo's managers would likely If the differences are expected be larger in future years, the managers should choose the method that will Marzollo's operating income and taxes. They may have an incentive, however, to use the alternate method in or to obtain higher levels of income-based compensation or if there are debt covenants that would be violated by showing income. One advantage of the FIFO method worth considering is that provides better information for managing the business because it keeps Next calculate cost per equivalent unit for direct materials and conversion costs. Assign total costs to units completed (and transferred out) and to units in ending work in process inventory. Begin by calculating the total from beginning inventory, then calculate the total costs accounted for. (For amounts with a 0 balance, make sure to enter " 0 " in the appropriate cell.) \begin{tabular}{l} Production Costs \\ \hline Completed and transferred out: \\ \hline Total costs of units completed and transferred out \\ \hline Total from beginning inventory \\ \hline Total costs accounted for \end{tabular}