Question: Assume that Concrete Creations used the FIFO method rather than the weighted average method in its process costing system. Prepare a cost reconciliation report for
Assume that Concrete Creations used the FIFO method rather than the weighted average method in its process costing system. Prepare a cost reconciliation report for the Forming Department for May. Compare the two cost reconciliation reports (weighted average and FIFO). Identify and comment on any significant differences between the two reports. If you were a manager at Concrete Creations, which approach would you recommend and why? Be sure to identify the advantages and disadvantages to both approaches when making your analysis
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