Assignment 5 Questions

18-35 Weighted-average method. (LO 3) Porter Handcraft is a manufacturer of picture frames for large retailers. Every picture frame passes through two departments: assembly and finishing. This problem focuses on the assembly department. The process-costing system at Porter has a single direct cost category (direct materials) and a single indirect cost category (conversion costs). Direct materials are added when the assembly department process is 10% complete. Conversion costs are added evenly during the assembly departments process. Porter uses the weighted-average method of process costing. Consider the following data for the assembly department in April:

Required: Summarize the total assembly department costs for April, and assign total costs to units completed (and transferred out) and to units in ending work-in-process. Check Figure: Total cost of work-in-process, ending, $4,400

18-37 FIFO method (continuation of Problem 18-35). (LO 4)Required: Do Problem 18-35 using the FIFO method of process costing. If you did Problem 18-35, explain any difference between the cost of work completed and transferred out and the cost of ending work-in-process in the assembly department under the weighted-average method and the FIFO method. Check Figure: FIFO Work-in-process, ending, $4,550

\begin{tabular}{lccc} & Physical Units (frames) & Direct Materials & Conversion Costs \\ \hline Work-in-process, April 1* & 75 & $1,775 & $135 \\ Started during April & 550 & & \\ Completed during April & 500 & & \\ Work-in-process, April 30 & 125 & & \\ Costs added during April & & $17,600 & \\ *Degree of completion: direct materials, 100\%; conversion costs, 40\%. & & \\ 'Degree of completion: direct materials, 100\%; conversion costs, 20\%. & & \end{tabular}