Chapter 8, Problem 40E

Prepare a Production Cost Report: Weighted-Average Method

Refer to the information in Exercise 8-39.

Required

1. a.      Prepare a production cost report using the weighted-average method.
2. b.      Is the ending inventory higher using FIFO or the weighted-average method? Why?
3. c.       Would you recommend that Lansing use the FIFO method or the weighted-average method? Explain.

8-39. Prepare a Production Cost Report: FIFO Method

Lansing, Inc. provides the following information for one of its department’s operations for June (no new material is added in Department T):

Required

Prepare a production cost report using FIFO.