Randazzo Ltd. produces sports fan towels and uses the weighted average process costing method. All towels are cut to be the same size and from the same fabric but can be customized by adding one or more options: (1) embossed team logo, (2) streamers, and (3) a wooden handle. The following information is available for September 2013:

Towels

BI (70% complete as to conversion) ....... 15,000

Started .................520,000

EI (95% complete as to conversion) ....... 9,000

Cost data

Beginning inventory DM $ ......... 13,250s

Beginning inventory logos .......... 4,035

Beginning inventory conversion ....... 5,703

Current period DM .............468,250

Current period embossed logos .........298,735

Current period streamers ...........119,977

Current period wooden handles ......... 1,312

Current period conversion ..........282,954

At the beginning of September, 40 percent of the towels had been embossed. At the end of September, 70 percent of the towels in work in process were plain, 25 percent had been embossed, and 5 percent had streamers. Conversion is applied to all items equally. Randazzo’s production and sales for the month were as follows:

a. Determine the cost of Randazzo’s ending WIP Inventory of towels.
b. Determine the cost of Randazzo’s ending FG Inventory of towels.
c. Determine the cost of goods sold for September.
d. Should the conversion cost for all towels be the same amount?

Transcribed Image Text:

Production Sales Plain towels Towels with logos and streame Towels with logos, streamers, and handles Towels with streamers Towels with streamers and handles Towels with handles 60,000 418,000 25,000 15,200 2,800 5,000 526,000 58,000 417,500 24,800 15,175 2,730 4,350 522,555 Total prodution for September