Prepare a correctly formatted (including heading) production cost report (see Exhibit 8.12 as a example report) using the FIFO method using the data given in Question A with one exception: the beginning direct materials costs as of June 1 listed in work-in-process should be $315,700 instead of $317,200. Beginning work-in-progress inventory on June 1 had 250,000 units made up of the following: Prior department costs transferred in from the Forming Department Costs added by the Steril- ization Department: Direct materials Direct labor Manufacturing overhead Work in process, June 1 Amount Degree of Completion $387,600 100% 317,200 100% 120,050 67.100 40% 30% $504,350 $891,950 During June, 580,000 units were transferred in from the Forming Department at a cost of $1,870,000. The Assembling Department added the following costs: Direct materials Direct labor Manufacturing overhead Total costs added $974,800 318,600 202.000 $1,495,400 Assembling finished 480,000 units and transferred them to the Sterilization Department. At June 30, the number of units in ending work-in-progress inventory was 350,000. The degree of completion of work-in-process inventory at June 30 was as indicated below: Direct materials Direct labor Manufacturing overhead 80% 65 30 A. Prepare a correctly formatted (including heading) production cost report (see Exhibit 8.11 as a example report) using the weighted-average method. B. Management wants to lower the costs of manufacturing the parts. It has established the following per unit targets for this product in the Assembling Department: materials, $1.65; labor, $.62; and manufacturing overhead $0.48. Has the product achieved management's cost targets in the Assembling Department? Write a short report to management containing your answer(s). 10 PAGE 4