Refer to the information in Exercise 8-49. 

Data in Exercise 8-49. 

Terminal Industries (TI) produces a product using three departments: Mixing, Processing, and Filtering. New material is added only in the Mixing Department. The following information is given for the Processing Department for August. TI uses process costing. 

Required

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

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

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

Transcribed Image Text:

WIP Inventory-Processing Department: August 1 Quantity (60% complete)...... Transferred-in costs (from Mixing Department). Conversion costs (Processing Department).. Total WIP cost: August 1.... Current production and costs (August) Units started... Current costs Transferred-in costs (from Mixing Department). Conversion costs (Processing Department).. Total current cost: August.... WIP Inventory-Processing Department: August 31 Quantity (20% complete).. Transferred-in costs (from Mixing Department). Conversion costs (Processing Department).. Total WIP cost: August 31... 28,000 units $33,890 13,612 $47,502 75,000 units $82,500 53,060 $135,560 13,000 units ?? ?? ??