ABC Products Company uses process costing to manufacture its products. For June, the company had the following data.

Beginning work in process inventory Degree of completion 25%	4,500 units
Units started in June	15,000 units
Units completed	17,500 units
Ending work in process inventory Degree of completion 75%	2,000 units
Cost of beginning work in process	$5,250
Direct material costs, current	$16,500
Conversion costs, current	$23,945

Direct materials are placed into production at the beginning of the process and conversion costs are incurred evenly throughout the process.

Required:

1. Prepare a production cost worksheet using the FIFO method
2. Prepare a production cost worksheet using the Weighted Average Method.
3. Under which circumstances there will be no difference between using FIFO or Weighted Average Method for process costing. Please make your comments only for process costing not as an inventory cost flow approach.

Answer rating: 100% (QA)

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