Harper Company produces brooms. Department 1 winds and cuts straw into broom heads and transfers these to Department 2 where the broom head is bound and attached to a handle. Straw is added at the beginning of the first process, and the handle is added at the end of the second process.
Normal losses in Department 1 should not exceed 5 percent of the units started; losses are determined at an inspection point at the end of the production process. The AQL in Department 2 is 10 percent of the broom heads transferred in; losses are found at an inspection point located 70 percent of the way through the production process.
The following production and cost data are available for October 2001.
$$
\begin{array}{lrr}
\hline & \text { Dept. 1 } & \text { Dept. 2 } \\
\hline \text { Beginning inventory } & 6,000 & 3,000 \\
\text { Started or transferred in } & 150,000 & ? \\
\text { Ending inventory } & 18,000 & 15,000 \\
\text { Spoiled units } & 9,000 & 6,000 \\
\text { Transferred out } & ? & 111,000
\end{array}
$$
$$
\begin{aligned}
&\text { COST RECORD }\\
&\begin{array}{lrr}
\hline \text { Beginning inventory: } & & \\
\quad \text { Preceding department } & \mathrm{n} / \mathrm{a} & \$ 6,690 \\
\text { Material } & \$ 3,000 & 0 \\
\quad \text { Conversion } & 2,334 & 504 \\
\text { Current period: } & & \\
\quad \text { Preceding department } & \mathrm{N} / \mathrm{a} & 230,910^* \\
\text { Material } & 36,000 & 740 \\
\text { Conversion } & 208,962 & 52,920
\end{array}
\end{aligned}
$$
The beginning and ending inventory units in Department 1 are, respectively, 10 percent and 60 percent complete as to conversion. In Department 2 , the beginning and ending units are, respectively, 40 percent and 80 percent complete as to conversion.
Using the weighted average method, create a cost of production report for each department for October 2001.