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:

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 averagemethod.

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PERCENT OF COMPLETION Units Transferred In MaterialConversion Cutting Department Beginning WIP Inventory Started in process Ending inventory N/A 100 8,000 36,000 3,600 40 N/A 100 70 Boxing Department Beginning WIP Inventory 2500 Transferred in Ending inventory 100 65 1,200 100 70 COSTS Transferred In Material Coversion Cutting Department Beginning WIP Inventory Current period 293,000 1,379,000 N/A 80,000 1,293,440 N/A Boxing Department 166,420 Beginning WIP Inventory Current period 6,993 246,120 0 383,640