Levitt Corporation manufactures a child’s car seat produced in three separate departments: Molding, Assembling, and Finishing. It uses the weighted-average process-costing method to account for costs of production. The following information was obtained for the Assembling Department for the month of June.

Percentage Amount Complete WIP, June 1 (1,000 units):

Prior department costs transferred intronmtne: Molding Depanthient.-c.---.ssen-steeesuctemeecerseeeeeeee $32,000 100%

Costs added by the Assembling Department:

Dineetimatenialsy swite. kcc.ccsmmvncceanna aeec aeese ine e $20,000 100 TSCA WON ser meceyce eece keene ajar ceamatce mete onan tane mer 7,200 60 ManuractuninGrOVennGa re. ccetincuincsa ccacvau scecrcean ee 5,500 50

$32,700 TGtal WIRSUUNe reese eee anes, SO wate tee eres $64,700 During the month of June, the Molding Department transferred into the Assembling Department 5,000 units at a prior department cost of $160,000. The Assembling Department added the following $150,000 of costs:

Directimatentalsa.. seta. cae eeenssaonteee $ 96,000 ConversiontlabOneun =e tee e ee 36,000 Manufacturing overhead ..............0. 18,000

$150,000 The Assembling Department completed and transferred out 4,000 units to the Finishing Department. At June 30, 2,000 units were still in WIP. The degree of completion of WIP at June 30 was as follows:

Directinnaterfalss-caese .t.ecenosty 90%

PneCilab Olen sree oe ee ee eee 70 Manufacturing overhead..............66. 35 Required

a. Prepare a production cost report using weighted-average costing.

b. Management wants to decrease the costs of manufacturing the car seat. In particular, it has set the following per-unit targets for this product in the Assembling Department: materials, $20; labor,

$10; and manufacturing overhead, $4.50. Has the Assembling Department achieved management’s cost targets?