Women's Entertainment television network features a TV show, The Cupcake Girls. This series follows best friends and business partners Heather and Lori in their hectic and entertaining journey to build a cupcake empire. In addition to the TV show, Heather and Lori bake cupcakes for retail customers for special occasions. The retail side of the business consists of two departments: the baking department and the packaging department. Within the baking department, the baking supplies (e.g., flour, sugar, eggs) are added at the beginning of the process; in contrast, the decorating supplies (e.g., icing, sprinkles) are added uniformly throughout the process. Within the packaging department, the costs of the packaging materials are added at the beginning of the process.

The following information relates to the baking department for February, an especially busy month because of Valentine's Day:

Required:
1. Prepare a production report for the baking department using the weighted average method.
2. For the packaging department, what is the number of units transferred in during February? What will be the transferred-in cost of those units?

Transcribed Image Text:

BWIP: Baking 300 Units, 80 percent complete Costs: Baking supplies Decorating supplies $540 $240 Conversion costs $630 Current production Units started in February 3,580 Costs: Baking supplies Decorating supplies Conversion costs EWIP: Ending inventory, 40 percent complete $5,600 $1,200 $8,000 80