Rausher Industries began a new product line this year. Management wants a cost report for the current year and a budget for next year. The product requires processing in two departments. Materials are added at the beginning of the process in department 1. Department 2 finishes the product but adds no direct materials. During the year work was begun on 12000 units in department 1, and 9000 of these units were transferred to department 2. The remaining 3000 units were 60 percent complete with regard to conversion costs in department 1, which incurred $36000 in material costs and $14040 in conversion costs. Department 2 completed and sent 7000 units to the finished goods warehouse. It ended the period with 2000 units 40 percent complete with regard to department 2's conversion costs, which were $32760 for the period. The plan for next year is to begin an additional 15 000 units in department 1. Management expects to finish the year with 5000 units one-half converted in department 1. Department 2 is expected to complete 14 000 units, and its ending inventory is expected to be 70 percent complete. Materials are expected to be $48 600, and conversion costs for departments 1 and 2 are expected to be $14545 and $59 075 respectively.

Prepare cost reports for the current year and a budgeted cost report for the next year assuming the entity follows the weighted average process costing .

PLEASE DO ON PAPER AND PENCIL/PEN!!!!