A key customer has asked Bob, the Sales Manager, if the Company is able to supply a new guitar-like instrument, the ukulele. The initial order is expected to be 10,000 units.

Following information:

Production Data for the six months ended 30 June 2013

Additional information:

i. Estimated annual overhead and direct labour costs for 2013 are $150,000 and $200,000 respectively.

ii. Estimated additional costs to be incurred to produce 10,000 units of ukulele Strings made from a special material $ 20,000 Carpenters $ 3,000

Tuning technicians $ 2,000

iii. Similar to the guitar, direct materials and conversion costs are incurred evenly throughout the process.

(a) Using the weighted average method, prepare a Production Report for the six months ended 30 June 2013 for Melody Instruments Co, Ltd.