Problem 8-58 (Static) Prepare a Production Cost Report and Show Cost Flows through Accounts: FIFO Method...

Transcribed Image Text:

Problem 8-58 (Static) Prepare a Production Cost Report and Show Cost Flows through Accounts: FIFO Method (LO 8-4, 5) 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 $576. 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 towels were 20 percent complete. Required: a. Prepare a production cost report; the company uses FIFO process costing. b. Show the flow of costs through T-accounts. Assume that current period conversion costs are credited to various payables. Prepare a production cost report; the company uses FIFO process costing. (Round "Cost per equivalent unit" to 2 decimal places.) Flow of Production Units Units to be accounted for: Beginning WIP inventory Units started this period Total units to be accounted for Units accounted for: Units completed and transferred out: From beginning inventory Started and completed currently Units in ending WIP inventory Total units accounted for RECYCLERS, INC. Production Cost Report-FIFO Physical Units Total Costs Conversion Costs 0 0 0 Costs to be accounted for: Costs in beginning WIP inventory Current period costs Total costs to be accounted for Cost per equivalent unit: Conversion costs $ 0 $ 0 Costs accounted for: Costs assigned to units transferred out: Costs from beginning inventory Current costs added to complete beginning WIP inventory: Conversion costs Total costs from beginning inventory Current costs of units started and completed: Conversion costs Total costs of units started and completed Total costs of units transferred out Costs assigned to ending WIP inventory: Conversion costs Total ending WIP inventory Total costs accounted for $ 0 $ 0 $ 0 $ 0 $ 0 $ Show the flow of costs through T-accounts. Assume that current period conversion costs are credited to various payables. Beginning inventory This period's costs: Ending inventory Beg.bal. End.bal. Work in Process Finished Goods Inventory Beg.bal. End.bal. Various Payables Problem 8-58 (Static) Prepare a Production Cost Report and Show Cost Flows through Accounts: FIFO Method (LO 8-4, 5) 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 $576. 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 towels were 20 percent complete. Required: a. Prepare a production cost report; the company uses FIFO process costing. b. Show the flow of costs through T-accounts. Assume that current period conversion costs are credited to various payables. Prepare a production cost report; the company uses FIFO process costing. (Round "Cost per equivalent unit" to 2 decimal places.) Flow of Production Units Units to be accounted for: Beginning WIP inventory Units started this period Total units to be accounted for Units accounted for: Units completed and transferred out: From beginning inventory Started and completed currently Units in ending WIP inventory Total units accounted for RECYCLERS, INC. Production Cost Report-FIFO Physical Units Total Costs Conversion Costs 0 0 0 Costs to be accounted for: Costs in beginning WIP inventory Current period costs Total costs to be accounted for Cost per equivalent unit: Conversion costs $ 0 $ 0 Costs accounted for: Costs assigned to units transferred out: Costs from beginning inventory Current costs added to complete beginning WIP inventory: Conversion costs Total costs from beginning inventory Current costs of units started and completed: Conversion costs Total costs of units started and completed Total costs of units transferred out Costs assigned to ending WIP inventory: Conversion costs Total ending WIP inventory Total costs accounted for $ 0 $ 0 $ 0 $ 0 $ 0 $ Show the flow of costs through T-accounts. Assume that current period conversion costs are credited to various payables. Beginning inventory This period's costs: Ending inventory Beg.bal. End.bal. Work in Process Finished Goods Inventory Beg.bal. End.bal. Various Payables