Refer to the data for Tavia Limited in Case 6€“17. Assume that the company uses the FIFO method.
In Case.

Required:
1. Prepare a report for the Forming Department for October showing how much cost should have been assigned to the units completed and transferred to the Stamping Department and to the ending work in process inventory.
2. Assume that in order to remain competitive, the company undertook a major cost-cutting program during October. Would the effects of this cost-cutting program tend to show up more under the weighted-average method or under the FIFO method? Explain your answer.
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Work in process inventary, October 1 (8000 units; materials 100% complete; conversion /s complete). Costs transferred in from the Mixing Department .. Material added during Octaber (added when processing is 50% complete in the Farming Department). Conversion costs added during October .. $ 22420* 81,480 ................. .............. 27600 96900 ..... Total departmental costs.. $228,400 Forming Department costs assigned to: Units completed and transferred to the Stamping Department (100,000 units at $2284 each).... $228,400 Work in process inventory, Octaber 31 (5,000 units, conversion s complete)... Total departmental costs assigned. $228,400 *Consists of cost transferred in, $8820; materials cost, $300; and conversion costs, S0,200