1. Use the weighted average cost (WAC) method with the following data:

   Work in process, May 1, 8,000 units, 75% completed		$ 75,000
   Materials added during May from Weaving Department, 105,000 units	$807,750
   Direct labor for May	275,200
   Factory overhead for May	100,850	1,183,800
   Total production costs to account for		$1,258,800
   Goods finished during May (includes goods in process, May 1), 104,000 units		?
   Work in process, May 31, 9,000 units, 10% completed		?

   Prepare a cost of production report for the Cutting Department of Oriental Carpet Company for May.

   Oriental Carpet Company
   Cost of Production Report-Cutting Department
   For the Month Ended May 31
   Units	Units	Equivalent Units of Production
   Units charged to production:
   Inventory in process, May 1
   Received from Weaving Department
   Total units accounted for by the Cutting Department
   Units to be assigned cost:
   Transferred to finished goods in May
   Inventory in process, May 31
   Total units to be assigned cost
   Costs
   Unit costs:
   Total costs for May in Cutting Department		$
   Total equivalent units		/
   Cost per equivalent unit		$
   Costs assigned to production:
   Inventory in process, May 1		$
   Costs incurred in May
   Total costs accounted for by the Cutting Department		$
   Costs allocated to completed and partially completed units:
   Transferred to finished goods in May		$
   Inventory in process, May 31
   Total costs assigned by the Cutting Department		$

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