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Choice Books Inc. has two departments: printing and binding. Each department has one direct cost

category (direct materials) and one indirect cost category (conversion costs). This problem focuses on

the binding department. Books that have undergone the printing process are immediately transferred to

the binding department. Direct materials are added when the binding process is 80% complete.

Conversion costs are added evenly during binding operations. When those o

perations are done, the books are immediately transferred to finished goods. Choice Books Inc. uses the weighted-average method of

process costing. The following is a summary of the April 2018 operations of the binding department.

Beginning work in process 900 $32,775 $ 0 15,000$

Degree of completion, beginning work in process 100% 0% 40 %

Transferred in during April 2018 2,700

Completed and transferred out during April 3,000

Ending work in process (April 30) 600

Degree of completion, ending work in process 100% 0% 60%

Total costs added during April $144,000 $26,700 $ 69,000

Required

1.Summarize the total binding department costs for April 2018 and assign these costs to units

completed (and transferred out) and to

units in ending work in process. (5+5=10 Marks)

2.Prepare journal entries for April transfers from the printing department to the binding

department and from the binding department to finished goods. (5 Marks

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