Wizard’s Skateboard shop sells premium skateboards for use inskate parks. The shop uses a process-costing system to compute theunit costs of the skateboards that it produces and sells for $450.Customers place orders online for skateboards where they cancustomize the decks and griptape with a choice of patterns andcolours. The parts are purchased and assembled, customized with thecustomer’s choice of grip tape for the deck, trucks and wheels, andpackaged to be sent by courier directly to the customer. Wizard’sSkateboard shop has three distinct departments: Assembly,Customization, and Packaging/Shipping.

The production process works as follows: all major parts havebeen assembled and the skateboard is tested before it istransferred from Assembly to Customization, the Customizationdepartment adds some materials to meet customer’s preference, andfinally, the Packaging/Shipping department places the skateboard ina cardboard box and makes arrangements for shipping to thecustomer. Overhead in each department is applied based on directlabour costs at a rate of 130% for assembly and 115% forcustomization.

During March, the following results are available for the firsttwo departments:

	Assembly	Customization
Beginning inventories:
Physical units	22 skateboards	15 skateboards
Costs:
Materials	$4,600	$4,900
Labour	$3,400	$4,250
Overhead	?	?
Transferred in	–	$1,000
Current production:
Transferred out	220 skateboards	240 skateboards
Ending inventory	14 skateboards	12 skateboards
Costs incurred in March:
Materials	$17,040	$1,300
Transferred in	–	?
Labour	$14,650	$1,180
Overhead	?	?
Percentage of completion:
Beginning inventory	65%	75%
Ending inventory	Material 50%	Material 100%
	Conversion 50%	Conversion 25%

Required:

Following the five steps outlined in the chapter, prepare aproduction report for the Assembly and Customization departmentsusing the weighted average method.