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Wholesome Mills produces specialized flour using a two-stage process: milling and enrichment. The following information is available in the enrichment department for the month
Wholesome Mills produces specialized flour using a two-stage process: milling and enrichment. The following information is available in the enrichment department for the month of June: Beginning WIP (pounds) Costs transferred from milling department Conversion costs (40% completed) Pounds transferred in June from milling department Ending work in process (pounds) Costs transferred from milling in June Conversion costs incurred in June $1,200 $800 1,600 8,000 800 $4,525 $3,270 The ending WIP was 30% complete with respect to conversion costs. a) Compute costs transferred out and costs in ending WIP for the enrichment department using (i) the weighted average method; and (ii) FIFO method. (5 points) (1 points) b) Which method results in higher ending balance in WIP and why? (Please do not round any intermediate calculations.)
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a To compute the costs transferred out and costs in ending work in process WIP for the enrichment department using the weighted average method and the ...Get Instant Access to Expert-Tailored Solutions
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