COST OF PRODUCTION REPORT The owner of Fino Linens Inc., a manufacturer of bed and bath linens, insisted on a formal report that provided all the details of the weighted average method. In the manufacturing process, all materials are added at the beginning. The following data are for the bath linens department for August:

Production:

Units in process, August 1, 60 percent complete 20,000 Units completed and transferred out 60,000 Units in process, August 31, 60 percent complete 20,000 Costs:

WIP, August 1 $11,520 Current costs 72,000 Total $83,520 Required:

Prepare a cost of production report for the bath linens department for August using the weighted average method.

Problem