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PART A Supershine Pty Ltd manufactures bottles of shoe polish in one processing department. Direct materials are added at the beginning of the process. Direct labour and overhead costs are incurred evenly throughout the manufacturing process. On 1st April 2015, the processing department had 10,000 bottles in work in process and these were 70% complete with respect to conversion. The costs associated with these bottles were $52,500 for direct materials and $64,500 for conversion. During April, work started on 37,000 bottles and at the end of April 2015 there were 12,000 bottles in work in process, which were 50% complete with respect to conversion. Costs incurred during April 2015 were $300,000 for direct materials and 366,000 for conversion. Supershine uses the weighted average costing method to value its inventories, as the company's management accountant has indicated this method is more commonly used than the FIFO method. Required: 1) Using the weighted average costing method of process costing calculate the cost of: i) goods completed and transferred out and ii) work in process at the end of April 2015. Show all workings. 2) Explain the difference between the weighted average method and FIFO. Explain also why the weighted average method may commonly be used over the FIF0 method. (11 + 3 # 14 marks)

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