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Beginning work-in-progress inventory on June 1 had 250,000 units made up of the following Amount Degree of Completion 100% Prior department costs transferred in from

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Beginning work-in-progress inventory on June 1 had 250,000 units made up of the following Amount Degree of Completion 100% Prior department costs transferred in from the $387,600 Costs added by the Stenl- zation Department: Direct materials Direct labor Manufacturing overhead 317,200 100% 120,05040% 67-100 30% hift $504,350 $891,950 Work in process, June 1 During June, 580,000 units were transferred in from the Forming Department at a cost of $1,870,000. The Assembling Department added the following costs: Direct materials Direct labor Manufacturing overhead Total costs added $974,800 318,600 $1,495,400 Assembling finished 480,000 units and transferred them to the Sterilization Department. At June 30, the number of units in ending work-in-progress inventory was 350,000. The degree of completion of work-in-process inventory at June 30 was as indicated below: Direct materials Direct labor 80% 65 30 Dire Lab 12 Prepare a correctly formatted (including heading) production cost report (see Exhibit 8.11 as a example report) using the weighted-average method. A B. Management wanls to lower the costs of manufacturing the parts. It has established 355000 the following per unit targets for this product in the Assembling Department: materials, $1.65; labor, $.62; and manufacturing overhead $0.48. Has the product achieved management's cost targets in the Assembling Department? Write a short report to management containing your answerts). C. Prepare a correctly formatted (including heading) production cost report (see 180000 Exhibit 8.12 as a example report) using the FIFO method using the data given in Question A with one exception: the beginning direct materials costs as of June 1 listed in work-in-process should be $315,700 instead of $317,200 Using data from the FIFO report, write a short report to management addressing the issues raised in Question B. D

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