In its Department R, Recyclers, Inc., processes donated scrap cloth into towels for sale in local...

 

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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 weighted-average process costing. b. Show the flow of costs through T-accounts. Assume that current period conversion costs are credited to various payables. Complete this question by entering your answers in the tabs below. Required A Required B 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 Conversion Physical Units Total Costs Costs Flow of Production Units Units to be accounted for: Beginning WIP inventory 300 Units started this period 2,700 Total units to be accounted for 3,000 Units accounted for: Units completed and transferred out: 2,850 2,850 Units in ending WIP inventory 150 30 Total units accounted for 3,000 2.880 Costs to be accounted for: Costs in beginning WIP inventory $ 576 $ 576 Current period costs 10,800 10,800 Total costs to be accounted for $ 11,376 $ 11,376 Cost per equivalent unit: Conversion costs 11,376.00 Costs accounted for: 2 decimal places required. Costs assigned to units transferred out: Conversion costs $ 120.00 120.00 Costs assigned to ending WIP inventory: Conversion costs Total costs accounted for $ 120.00 $ 120.00 < Required A Required B > 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 weighted-average process costing. b. Show the flow of costs through T-accounts. Assume that current period conversion costs are credited to various payables. Complete this question by entering your answers in the tabs below. Required A Required B 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 Conversion Physical Units Total Costs Costs Flow of Production Units Units to be accounted for: Beginning WIP inventory 300 Units started this period 2,700 Total units to be accounted for 3,000 Units accounted for: Units completed and transferred out: 2,850 2,850 Units in ending WIP inventory 150 30 Total units accounted for 3,000 2.880 Costs to be accounted for: Costs in beginning WIP inventory $ 576 $ 576 Current period costs 10,800 10,800 Total costs to be accounted for $ 11,376 $ 11,376 Cost per equivalent unit: Conversion costs 11,376.00 Costs accounted for: 2 decimal places required. Costs assigned to units transferred out: Conversion costs $ 120.00 120.00 Costs assigned to ending WIP inventory: Conversion costs Total costs accounted for $ 120.00 $ 120.00 < Required A Required B >