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 Show the flow of costs through T-accounts. Assume that current period conversion costs are credited to various payables. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Work in Process Various Payables Beginning inventory Beg.bal. This period's costs: End bal. Ending inventory Finished Goods Inventory Beg.bal. End.bal. 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 Total Costs Physical Units Costs Flow of Production Units Units to be accounted for Beginning WIP inventory 300 Units started this period 2,700 3,000 Total units to be accounted for Units accounted for Units completed and transferred out: 2,850 2,850 Units in ending WIP inventory 150 30 3,000 2,880 Total units accounted for Costs to be accounted for 576 $ Costs in beginning WIP inventory 576 Current period costs 10,800 10,800 11,376 S $ 11,376 Total costs to be accounted for Cost per equivalent unit: Conversion costs 11,376.00 Costs accounted for 2 decimal places required. Costs assigned to units transferred out 120.00 $ Conversion costs 120.00 Costs assigned to ending WIP inventory: Conversion costs 120.00 $ 120.00 Total costs accounted for
