1. Complete Problem 17-36 using the FIFO method of process costing.

In Problem 17-36, 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 McKnight 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 department’s process. McKnight uses the weighted-average method of process costing. Consider the following data for the assembly department in April 2014:

2. If you did Problem 17-36, explain any difference between the cost of work completed and transferred out and the cost of ending work in process in the assembly department under the weighted-average method and the FIFO method. Should McKnight’s managers choose the weighted-average method or the FIFO method? Explainbriefly.

Physical Unit Diret Conversion Frames) Materials Costs Work in process, April 1 Started during April 2014 Completed during April 2014 Work in process, April 30* Total costs added during April 2014 $ 1530 156 60 510 450 120 $17,850 $11,544 "Degree of c om pletion direct materials, 100%, conversion costs, 40%. bDegree of completion: direct materials, 100%, conversion costs, 15%.