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FIFO computations (continuation of Exercise 4.22) Required Do Exercise 4.22 (1) using FIFO and four decimal places for unit costs. Explain any difference between the cost of work completed and transferred out and cost of closing work in progress in the Forming Department under the weighted-average method and the FIFO method. Exercise 4.22 Weighted-average method Sligo Toys Ltd manufactures one type of wooden toy figure. It buys wood as its direct material for the Forming Department of its Ballinode plant. The toys are transferred to the Finishing Department, where they are hand-shaped and metal is added to them. Sligo Toys uses the weighted-average method of process costing. Consider the following data for the Forming Department in April 2018: Required 1 Summarise the total Forming Department costs for April 2018, and assign these costs to units completed (and transferred out) and to units in closing work in progress using the weightedaverage method. 2 Prepare a set of summarised journal entries for all April transactions affecting Work in Progress – Forming. Set up a T-account for Work in Progress – Forming and post the entries to it.
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