The Royal Paint factory in Tasmania is responsible for manufacturing the Organic Foundation product.The factory employs a process costing system.The process for manufacturing the Organic Foundation involves mixing all the ingredients. The ingredients are then poured into round containers and vigorously shaken.It is assumed for process costing purposes that all raw material ingredients are added at the commencement of the process. Packaging into pyramid-shaped boxes occurs when the manufacturing process is 70% complete. For the purpose of accounting, the conversion costs of manufacturing are assumed to occur evenly across the whole of the production cycle.

The following information relates to the production of Organic foundation during the month of November.

Work in process 01/11/2019

100,000

Stage of completion

Value

Raw materials

100%

$120,000

Packaging

100%

$25,000

Conversion

65%

$20,000

Work in process - 30/11/2019

360,000

WIP - 30/11/2019 complete

60%

Cars commenced in November

400,000

Costs incurred

Raw materials

$28,000

Packaging

$82,500

Conversion

$175,500

Required:

1. Using the Weighted Average Cost Method, determine the cost value of closing WIP and the cost value of goods transferred out during the period.
2. Using the First in First Out (FIFO) method, determine the cost value of closing WIP and the cost value of goods transferred out during the period.