Do Exercise 4.22 (1) using FIFO and four decimal places for unit costs. Explain any difference between the cost of work completed and transferred out and cost of closing work in progress in the Forming Department under the weighted-average method and the FIFO method.

Data From Exercise# 4.22

Sligo Toys Ltd manufactures one type of wooden toy figure. It buys wood as its direct material for the Forming Department of its Ballinode plant. The toys are transferred to the Finishing Department, where they are hand-shaped and metal is added to them. Sligo Toys uses the weighted-average method of process costing. Consider the following data for the Forming Department in April 2018:

Physical units (missiles) Direct Conversion materials costs Work in progress, 1 April* 300 7 500 2 125 Started during April 2 200 Completed during April 2 000 Work in progress, 30 April Costs added during April 500 70 000 42 500 * Degree of completion: direct materials, 100%; conversion costs, 40%. 1 Degree of completion: direct materials, 100%; conversion costs, 25%.