Question: Concrete Creations can use the FIFO method rather than the weighted-average method in its process costing system. Describe the difference between the two methods.

Scenario

Concrete Creations manufactures concrete bird baths that are sold through retail outlets nationwide. The bird baths are made in a two-stage process. In the Forming Department, the concrete is poured into silicone molds where it is allowed to cure and set. Once set, the birdbaths are removed from the mold and sent to the Finishing Department where any imperfections are removed and the birdbaths are sprayed with a special sealant.

Information for the Forming Department for the month of May is provided below.

Percent Complete Materials Conversion 100% 60% Work in Process, Beginning Started into Production Completed and Transferred Out Work in Process, Ending Units 10,000 90,000 80,000 20,000 100% 40% Work in Process, beginning Cost added during period Materials Conversion $ 12,600 $ 12,400 $ 167,400 $ 119,350