Springtime Paints makes quality paint in one production departme

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Springtime Paints makes quality paint in one production department. Production begins with the blending of various chemicals, which are added at the beginning of the process, and ends with the canning of the paint. Canning occurs when the mixture reaches the 90 percent stage of completion. The gallon cans are then transferred to the Shipping Department for crating and shipment. Labor and overhead are added continuously throughout the process. Factory overhead is applied at the rate of $3 per direct labor hour. Prior to May, when a change in the process was implemented, work in process inventories were insignificant. The change in process enables more production but results in large amounts of work in process. The company has always used the weighted average method to determine equivalent production and unit costs. Now production management is considering changing from the weighted average method to the first-in, first-out method. The following data relate to actual production during May: Work in process inventory, May 1 Direct materialchemicals $45,100 Direct labor ($10 per hour) .. 5,250 Factory overhead . 1,550 Costs for May Direct materialchemicals $228,900 Direct materialcans .. 7,000 Direct labor ($10 per hour) 35,000 Factory overhead 11,000 Units for May (Gallons) Work in process inventory, May 1 (25% complete) 4,000 Sent to Shipping Department . 20,000 Started in May 21,000 Work in process inventory, May 31 (80% complete) . 5,000 a. Prepare a cost of production report for May using the WA method. b. Prepare a cost of production report for May using the FIFO method. c. Discuss the advantages and disadvantages of using the WA method versus the FIFO method, and explain under what circumstances each method should be used.

Problem 6-55				Name:
	Insert your answers in the gray-shaded cells of columns B, C, E, G, and I. If an answer is
	incorrect, an asterisk will appear.
a.	Springtime Paints
	Cost of Production Report
	For the Month of May 31, XXXX
	Production Data:	Units
	Beginning inventory
	Units started
	Units to account for
		Direct Materials
		Units		Chemicals		Cans		Conversion
	Beginning WIP inventory
	Started & completed
	Ending WIP inventory
	Equivalent units
		Direct Materials
	Cost Data:	Total		Chemicals		Cans		Conversion
	Beginning inventory
	Current cost
	Total costs
	Divided by EUP
	Cost per equivalent unit
	Cost Assignment:	Units		Cost
	Transferred out		x
	Ending WIP:
	Chemicals		x
	Conversion		x
	Total costs accounted for
b.	Springtime Paints
	Cost of Production Report
	For the Month of May 31, XXXX
	Production Data:	Units
	Beginning WIP inventory
	Units started
	Units to account for
		Direct Materials
		Units		Chemicals		Cans		Conversion
	Beginning WIP
	Started & completed
	Ending WIP inventory
	Units accounted for
		Direct Materials
	Cost Data:	Total		Chemicals		Cans		Conversion
	Beginning inventory
	Current cost
	Total costs
	Divided by EUP
	Cost per equivalent unit
	Cost Assignment	Units		Cost
	Transferred out:
	Beginning WIP inventory
	Complete beginning WIP:
	Cans		x
	Conversion		x
	Total cost of BI transferred
	Started & completed
	Ending WIP inventory:
	Chemicals		x
	Conversion		x
	Total cost accounted for
c.	(Key essay answer here.)