Question: Western Inc. uses a process costing system. The following data concern the operations of the company's first processing department for a recent month: Beginning WIP:
Western Inc. uses a process costing system. The following data concern the operations of the company's first processing department for a recent month:
| Beginning WIP: | |
| Units in process | 4,500 |
| Stage of completion with respect to materials | 80% |
| Stage of completion with respect to conversion | 60% |
| Costs in beginning WIP: | |
| Materials cost | $16,920 |
| Conversion cost | $106,920 |
| Units during the month: | |
| Units started into production during the month | 21,000 |
| Units completed and transferred out | 18,400 |
| Costs added to production during the month: | |
| Materials cost | $93,645 |
| Conversion cost | $825,531 |
| Ending WIP: | |
| Stage of completion with respect to materials | 70% |
| Stage of completion with respect to conversion | 50% |
Required:
1) Prepare a production report for the department using the Weighted Average method.
2) Prepare a production report for the department using the FIFO method.
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