42. (Two departments; weighted average) The Best of the Season 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 depending on the size of the trees being made at that time. The “branches” are then transferred to the Boxing Department where the lengths are separated 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 2000 production in each of the two departments:

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 report for the Boxing Department, also using the weighted average method.

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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 COSTS Transferred-in Material Conversion Cutting Department Beginning inventory Current period N/A $52,750 $13,250 80,290 $ 5,550 Boxing Department Beginning inventory $ 9,608 $ 0 Current period ? 12,510 $ 550 20,660