Refer to the data for Provost Industries in Case 4-19.

Refer to the data for Provost Industries in Case 4—19. Assume that the company uses the FIFO method in its process costing system.


Required:

1. Prepare a report for the Finishing Department for April showing how much cost should have been assigned to the units completed and transferred to finished goods and how much cost should have been assigned to the ending work in process inventory.

2. As stated in the case, the company experienced an increase in materials prices during April. Would the effects of this price increase tend to show up more under the weighted-average method or under the FIFO method? Why?

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