(Two departments; weighted average) The Holiday Spirits Corporation manufac¬ tures plastic Christmas trees in two departments: Cutting and Boxing. In the Cutting Department, wire wrapped with green “needles” is placed into produc¬ tion at the beginning of the process and is cut to various lengths depending on the size of the trees being made at that time. The “branches” are then trans¬ ferred to the Boxing Department where the lengths are separated into the nec¬ essary 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 August 1997 production in each of the two departments.LO1

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PERCENT OF COMPLETION UNITS Transferred-in Material Conversion Cutting Department Beginning inventory 9,000 N/A 100 30 Started in process 35,000 Ending inventory 3,600 N/A 100 70 Boxing Department Beginning inventory 2,500 100 0 55 Transferred-in Ending inventory 1,200 100 0 60 Transferred-in Material Conversion Cutting Department Beginning inventory N/A $13,250 $ 5,550 Current period 52,750 80,290 Boxing Department Beginning inventory $9,608 $ 0 $ 550 Current period 12,510 20,660