In its Department R, Recyclers, Inc., processes donated scrap cloth into towels for sale in local thrift shops. It sels 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 $10,8D0 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 FIFO process costing. RECYCLERS, INC Production Cost Report -FIFO of Production Units Compute Equivalent Units Physical Units Conversion Units to be accounted for. Beginning WIP inventory Units started this period Tolal units to be accounted for 300 2,700 3,000 Units accounted for Units completed and transterred out: From beginning inventory Started and completed cumrently Units in ending WIP invenbory Tolal units aecounted far