Refer to the information in Exercise 8-39.

Information From Exercise 8-39

WIP inventory-Department T

Beginning inventory (15,000 units, 60% complete with respect

to Department T costs) . . . . . . . . . . . . . . . . . . . . . .

Transferred-in costs (from Department S) . . . . . . . . . . . ......... $ 116,000

Department T conversion costs . . . . . . . . . . . . . . . . . . . ......... 53,150

Current work (35,000 units started)

Prior department costs . . . . . . . . . . . . . . . . . . . . . . . . . . . ....... 280,000

Department T costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....... 209,050

The ending inventory has 5,000 units, which are 20 percent complete with respect to Department T costs and 100 percent complete for prior department costs.

Required

a. Prepare a production cost report using the weighted-average method.

b. Is the ending inventory higher using FIFO or the weighted-average method? Why?

c. Would you recommend that Lansing use the FIFO method or the weighted-average method? Explain.