fifo method and weighted average method

Project Description:

introduction:
there are two methods of preparing cost of production reports, the weighted-average costing method and the fifo method. in this task, you will work within groups to prepare a cost of production report using both of the methods. in addition, you will identify the appropriate method and reasons for choosing that method for a specific type of business.

cost production report

the following data for the packaging department for march are available:
units: packaging department
beginning wip-units 10,000
started in production 80,000
transferred out 75,000
ending wip units- 15,000
beginning wip- % complete 40%
ending wip- % complete 80%
costs:
beginning wip- transferred in costs $3,000
beginning wip- materials costs ---
beginning wip-conversion costs $1,630
transferred-in costs $9,600
direct materials- packaging $21,000

conversion costs:
direct labor $ 8,470
manufacturing overhead $ 7,300
total conversion costs $15,770

ben hiebert, president of hiebert chocolate, ltd, is trying to determine whether to use a weighted-average or fifo product costing system, since hiebert’s contract with wal-mart allows for a sales price of cost per department + 15%.
requirements
1. consider only the packaging department data. prepare cost of production reports using both weighted-average and fifo process costing.
2. which method should heibert use and why?
Skills Required:
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