Question:
(Two departments; WA) Always Christmas makes artificial Christmas trees in two departments: Cutting and Boxing. In the Cutting Department, wire wrapped with green "needles" is placed into production at the beginning of the process and is cut to various lengths. The "branches" are then transferred to the Boxing Department, where the lengths are separated into the necessary groups to make a tree. The "limbs" are then placed in boxes and immediately sent to Finished Goods.
The following data are available related to the October 2010 production in each of the two departments:
|
|
PERCENT OF COMPLETION
|
|
Units
|
Transferred In
|
Material
|
Conversion
|
|
Cutting Department
|
|
|
|
|
|
Beginning WIP Inventory
|
8,000
|
N/A
|
100
|
40
|
|
Started in process
|
36,000
|
|
|
|
|
Ending inventory
|
3,600
|
N/A
|
100
|
70
|
|
Boxing Department
|
|
|
|
|
|
Beginning WIP Inventory
|
2,500
|
100
|
0
|
65
|
|
Transferred in
|
?
|
|
|
|
|
Ending inventory
|
1,200
|
100
|
0
|
70
|
|
|
|
|
|
|
|
COSTS
|
|
|
Transferred In
|
Material
|
Conversion
|
|
Cutting Department
|
|
|
|
|
Beginning WIP Inventory
|
N/A
|
$ 293,000
|
$ 80,000
|
|
Current period
|
N/A
|
1,379,000
|
1,293,440
|
|
Boxing Department
|
|
|
|
|
Beginning WIP Inventory
|
$166,420
|
$ 0
|
$ 6,993
|
|
Current period
|
?
|
383,640
|
246,120
|
a. Prepare a cost of production report for the Cutting Department assuming a weighted average method.
b. Using the data developed from part (a), prepare a cost of production report for the Boxing Department assuming a weighted average method.