(Comprehensive; weighted average) Caunitz Company produces mops. Department 1 winds and cuts cotton into mop heads and transfers these to Department 2 where the mop head is twisted and attached to a handle. Cotton is added at the beginning of the first process, and the handle is added at the end of the second process.

Normal losses in Department 1 should not exceed 5 percent of the units started; losses are determined at an inspection point at the end of the production process. The AQF in Department 2 is 10 percent of the mop heads transferred in; losses are found at an inspection point located 70 percent of the way through the production process.

The following production and cost data are available for January 1997.

The beginning and ending inventory units in Department 1 are, respec¬ tively, 10 percent and 60 percent complete as to conversion. In Department 2, the beginning and ending units are, respectively, 40 percent and 80 percent complete as to conversion.
Using the weighted average method, determine a cost of production report for each department for January 1997.LO1

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Beginning inventory Started or transferred in Ending inventory Spoiled units Transferred out PRODUCTION RECORD (IN UNITS) DEPT. TWO DEPT. ONE 6,000 3,000 150,000 ? 18,000 15,000 9,000 6,000 ? 111,000