Sligo Toys Ltd manufactures wooden toy figures at its Ballinode plant. It has two departments – the Forming Department and the Finishing Department. (Exercises 4.22 and 4.23 focused on the Forming Department.) Consider now the Finishing Department, which processes the formed toys through hand-shaping and the addition of metal. For simplicity here, suppose all additional direct materials are added at the end of the process. Conversion costs are added evenly during- Finishing operations.

Sligo Toys uses the weighted-average method of process costing. The following is a summary of the April 2018 operations in the Finishing Department:

Required
1. Summarise the total Finishing Department costs for April 2018, and assign these costs to units completed (and transferred out) and to units in closing work in progress using the weighted-average method.
2. Prepare journal entries for April transfers from the Forming Department to the Finishing Department and from the Finishing Department to Finished Goods.

Data Exercises 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:

Data Exercises 4.23

Required 
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.

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Physical units Transferred- in (toys) Direct Conversion costs materials costs Work in progress, 1 April* 500 €17 750 €0 €7 250 Transferred-in during April 2 000 Completed during April 2 100 Work in progress, 30 Aprilt 400 Costs added during April €104 000 €23 100 €38 400 * Degree of completion: transferred-in costs, 100%; direct materials, 0%; conversion costs, 60%. * Degree of completion: transferred-in costs, 100%; direct materials, 0%; conversion costs, 30%.