Please help me finish this problem! Thanks! In its Department R, Recyclers, Inc.

Question

Please help me finish this problem! Thanks!

In its Department R, Recyclers, Inc., processes donated scrap cloth into towels for sale in local thrift shops. It sells the products at cost. The direct materials costs are zero, but the operation requires the use of direct labor and overhead. The company uses a process costing system and tracks the processing volume and costs incurred in each period. At the start of the current period, 300 towels were in process and were 60 percent complete. The costs incurred were S576. During the month, costs of $10,800 were incurred, 2,700 towels were started, and 150 towels were still in process at the end of the month. At the end of the month, the lowels were 20 percent complete Required: a. Prepare a production cost report; the company uses weighted-average process costing. (Round "Conversion costs" to 2 decimal places.) RECYCLERS, INC Production Cost Report-Weighted Average of Production Units Compute Equivalent Units Physical Units Conversion Units to be accounted for Beginning WIP invendory Units started this period Total units to be accounted for 300 2,700 3.000 Units accounted for Units completed and translerred out: Units in ending WIP Inventory 2,850 150 3,000 2.850 30 2.880 Total units accounted for rsion Costs Total Costs Costs Costs to be accounted for: Costs in beginning WIP inventary Current period costs 576 $ 0,800 11,376 $ 578 0,800 376 Total costs to be accountad for Cost per equivalent unit Conversion costs 3.95 Costs accounted for Costs assigned to units transferred out: Costs assigned to ending WIP inventory Conwersion costs Total costs acocunted for

Explanation / Answer

Recyclers Inc. Production cost report - weighted average Flow of production units Compute equivalent units Units to be accounted for Physical units Conversion costs Begining WIP inventory $             300 Units started this period $         2,700 Total units to be accounted for $         3,000 Units completed and transferred out (bal. Fig) $         2,850 $         2,850 Units in ending WIP Inventory (150) (150*20%) $             150 $               30 Total units accounted for $         3,000 $         2,880 Costs Total costs Conversion costs Cost in beginning WIP $             576 $             576 Current period costs $       10,800 $       10,800 Total costs to be accounted for $       11,376 $       11,376 Cost per equivalent unit ($11,376 / 2,880) $            3.95 $            3.95 Conversion cost Cost accounted for Costs assigned to units transferred out Conversion cost ($3.95 X 2,850) $       11,258 $       11,258 Costs assigned to ending WIP inventory Conversion cost $       118.50 $       118.50 Total costs accounted for $       11,376 $       11,376 Work in process Beginning inventory $             576 This period costs: Current period costs $       10,800 $ 11,257.50 Conversion cost Ending balance $       118.50 Various accounts $       10,800 Current period costs Ending balance $       10,800 Finished goods inventory Conversion cost $ 11,257.50 Ending balance $ 11,257.50

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