Process Costing:

Mervyn King produces paints using a two$-$stage process: blending and canning. The following

information is available in the canning department for the month of July:

The ending WIP was $60\%$ complete with respect to canning costs.

a$)$ Compute costs transferred out and costs in ending WIP for the canning department using

$($i$)$ the weighted average method; and $($ii$)$ FIFO method.

$(5$ points$)$

b$)$ Which method results in a higher ending balance in WIP? What does that tell you about

the change in canning costs per gallon from June to July?

$(1$ point$)$

$($Please do not round any intermediate calculations.$)$