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?

Finishing Department costs: Work in process inventory, April 1, 450 units; materials 100% complete; conversion 60% complete Costs transferred in during the month from the preceding department, 1,950 units... Materials cost added during the month ... Conversion costs incurred during the month $ 8,208* 17,940 6,210 13,920 Total departmental costs .... $46,278 Finishing Department costs assigned to: Units completed and transferred to finished goods, 1,800 units at $25.71 per unit.... Work in process inventory, April 30, 600 units; materials 0% complete; conversion 35% complete $46,278 Total departmental costs assigned.. $46,278 *Consists of cost transferred in, $4,068; materials cost, $1,980; and conversion cost, $2,160.