(Two departments; weighted average; advanced) Big Piney Corporation makes plastic 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, de¬ pending on the size of the trees being made at that time. The “branches” are then transferred to the Boxing Department where the lengths are sepa¬ rated into the necessary groups to make a tree. These are then placed in boxes and immediately sent to Finished Goods.

The following data are available related to the October 2006 production in each of the two departments:LO1.

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PERCENT OF COMPLETION Units Transferred In Material Conversion Cutting Department Beginning inventory 8,000 N/A 100 30 Started in process 36,000 Ending inventory 3,600 N/A 100 Boxing Department Beginning inventory 2,500 100 0 Transferred in Ending inventory 1,200 100 0 60 28 70 55 COSTS Transferred In Material Conversion Cutting Department Current period Boxing Department Beginning inventory Current period Beginning inventory N/A N/A $ 73,250 344,750 $ 20,000 323,360 $41,605 0 $ 2,100 ? 95,910 61,530. 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 re- port for the Boxing Department, also using the weighted average method.