BUS2102-Spring 2019-Chapter 6 Fun & Exciting Exercises Round costs per equivalent unit to 5 decimals places and everything else to whole amounts Exercise 1) Aussie Yarn Co. is a U.S. producer of woolen yarn made from wool imported from Australia. Raw wool is processed, spun, and finished before being shipped out to knitting and weaving companies. Material is added in the beginning of processing and conversion costs are added evenly throughout processing. Aussie began the month of August with 8,324 units in process that were 100 percent complete as to materials and 60 percent complete as to labor and overhead. They started 19,946 units into production during the month of which 7,700 remained in ending work in process inventory and were 100 percent complete as to materials and 55 percent complete as to conversion costs. The cost data are as follows: Beginning work in process: Direct materials Direct labor Manufacturing overhead S 8,080 S 2,838 3,357 Costs added during August: Direct materials Direct labor Manufacturing overhead S20,165 $17.480 $38,990 Required Prepare a production cost report for the month of August Exercise 2) At the start of October, Dilbert Pure Extract had work in process inventory consisting of 4,700 units that were 80 percent complete with respect to materials and 40 percent complete with respect to conversion costs. The cost of the units was $88,845 ($29,900 was labor cost and $57,245 was prime cost). During October, the company started 84,500 units and incurred $984,245 of material cost and $800,010 of labor and overhead. The company completed 75,700 units during the month. The units in ending work in process were 85 percent complete with respect to materials and 45 percent complete with respect to conversion costs. Required Prepare a production cost report for the month of August