Weighted-average method. McKnight 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 Ashworth 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 departments process.

Ashworth uses the weighted-average method of process costing. Consider the following data for the assembly department in April 2014:

Physical Unit Direct Materials Conversion Costs

Work in Process, April 1* 60 $1530 $156

Started during April 2014 510

Completed during April 2014 450

Work in process, April 30 ** 120

Total costs added during April 2014 $17,850 $11,544

*Degree of completion: direct materials, 100%; conversion costs, 40%.

**Degree of completion: direct materials, 100%; conversion costs, 15%.

1. Summarize the total assembly department costs for April 2014, and assign them to units completed (and transferred out) and to units in ending work in process.

2. What issues should a manager focus on when reviewing the equivalent units calculation?

3. Complete the problem usint the FIFO method of process costing