1. 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.

FIFO

Weighted average

Conversion Direct Material 4,000 Units beginning work in process Units started in the productions Total Units to be counted 10,000 90,000 100,000 Units completed and transferred out Units ending work in process Total units to be counted 80,000 20,000 100,000 70,000 20,000 90,000 70,000 8,000 82,000 FIFO Current period costs of Direct Material Current period costs of conversion Total cost of ending work in process $167,400.00 $119,350.00 $48,840.00 Total cost of units transferred out for May: $335,590.00 Beginning work in process Units started and completed Total cost of units transferred out for May $5,820.00 $232,050.00 $286,710.00 Cost Reconciliation Total Costs to account for: Beginning Work in Process Cost added during the month Total Costs to account for $25,000.00 $286,750.00 $311,750.00 EUP 80,000 80,000 Cost per Eup $1.80 $1.50 Total Costs $144,000.00 $119,772.73 $263,772.73 Total Costs accounted for Cost of units transferred out Direct Material Conversion Total Cost transferred out Cost of ending work in process Direct material conversion Total cost of ending work in process Total Costs accounted for 20,000 8,000 $1.80 $1.50 $36,000.00 $11,977.27 $47,977.27 $311,750.00 Conversion Direct Material 4,000 Units beginning work in process Units started in the productions Total Units to be counted 10,000 90,000 100,000 Units completed and transferred out Units ending work in process Total units to be counted 80,000 20,000 100,000 70,000 20,000 90,000 70,000 8,000 82,000 FIFO Current period costs of Direct Material Current period costs of conversion Total cost of ending work in process $167,400.00 $119,350.00 $48,840.00 Total cost of units transferred out for May: $335,590.00 Beginning work in process Units started and completed Total cost of units transferred out for May $5,820.00 $232,050.00 $286,710.00 Cost Reconciliation Total Costs to account for: Beginning Work in Process Cost added during the month Total Costs to account for $25,000.00 $286,750.00 $311,750.00 EUP 80,000 80,000 Cost per Eup $1.80 $1.50 Total Costs $144,000.00 $119,772.73 $263,772.73 Total Costs accounted for Cost of units transferred out Direct Material Conversion Total Cost transferred out Cost of ending work in process Direct material conversion Total cost of ending work in process Total Costs accounted for 20,000 8,000 $1.80 $1.50 $36,000.00 $11,977.27 $47,977.27 $311,750.00