Transferred in costs, FIFO method. Suppose that Bookworm, Inc., uses the FIFO method instead of the weighted average method in all of its departments. The only changes to this Problem under the FIFO method are that total transferred in costs of beginning work in process on April 1 are $36,750 (instead of $32,550) and that total transferred in costs added during April are $124,800 (instead of $129,600).
1. Using the FIFO process costing method.
2. Explain any difference between the cost of work completed and transferred out and the cost of ending work in process in the binding department under the weighted average method and the FIFO method.
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A |
B |
C |
D |
E |
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1 |
Physical Units (books) |
Transferred In Costs |
Direct Materials |
Conversion Costs |
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2 |
Beginning work in process |
1,050 |
$ 32,550 |
$ 0 |
$13,650 |
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3 |
Degree of completion, beginning work in process |
100% |
0% |
50% |
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4 |
Transferred in during April 2012 |
2,400 |
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5 |
Completed and transferred out during April |
2,700 |
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6 |
Ending work in process (April 30) |
750 |
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7 |
Degree of completion, ending work in process |
100% |
0% |
70% |
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8 |
Total costs added during April |
$129,600 |
$23,490 |
$70,200 |