Wallace, Inc., produces a product that goes through three departments: Machining, Assem¬

bly, and Polishing. Materials are added at the beginning of the machining operation; labor and overhead are added uniformly throughout the process. The Machining Department had work in process at the beginning and end of 2001 as follows:

The company completed 42,500 units during the year and incurred the following manufac¬ turing costs:

The inventory at the beginning of the year was carried at the following costs:

Required:
1. Prepare a cost of production report using the weighted average method.
2. Prepare a cost of production report using the FIFO method.

Transcribed Image Text:

January 1, 2001-2,500 units December 31, 2001-4,000 units Percentage of Completion Materials Conversion Costs 100% 60% 100% 50%