Requirement $2.$ 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. Should McKnight's managers choose the weighted$-$average method or the

FIFO method? Explain briefly.

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.

The FIFO ending work in process inventory is

lower than the weighted$-$average ending inventory.

This is because FIFO assumes that the first to be completed and transferred out are the

Meanwhie, ending work in process consists of

only the