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, 350 towels were in process and were 60 percent complete. The costs incurred were $170.

During the month, costs of $14,000 were incurred, 2,800 towels were started, and 175 towels were still in process at the end of the month. At the end of the month, the towels were 20 percent complete.

Costs Total Costs Conversion Costs Costs to be accounted for: Costs in beginning WIP inventory Current period costs Total costs to be accounted for Cost per equivalent unit: Conversion costs Costs accounted for: Costs assigned to units transferred out Costs from beginning inventory Current costs added to complete beginning WIP inventory Conversion costs $ Current costs of units started and completed Conversion costs Total costs of units started and completed O Total costs of units transferred out $ Costs assigned to ending WIP inventory Conversion costs Total ending WIP inventory t Total costs accounted for 0 (b) Show the flow of costs through T-accounts. Assume that current period conversion costs are credited to various payables. Work in Process Finished Goods Inventory Beginning inventory Beg.bal This period's costs; End.bal. 0 Ending inventoryIn its Department F., FREEVoters , Inc. , ProcessEs donated Scrap cloth into towels for sa'E in local thrift shops It BELLE the products at FUEL. The direct materials costs are Zero , but the operation requires the USE Of direct labor and overhead . The company LEEE a procEEE costing system and tracks the processing volume and COSTS incurred in Each period _ At the Start of the current period , 250 towels WERE in process and WERE ED percent complete . The costs incurred WERE ETTO _ During the month , cuts of $ 14 , 400 were incurred , 2. 340 towels were started , and 17.5 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 FIFE Process FOEting _ ( Found "cost Per Equivalent unit" to 2 decimal places _ !` RECYCLERS , INC . Production Cost Report - FIFO Flow of Production Units Compute Equivalent Units Physical Units| Conversion Costs Units to be accounted for :` Beginning VUIF inventory Units Started this period Total units to be accounted for Units accounted for .` Units competed and transferred out ." From beginning inventory* Started and completed currently* Units in ending WIF inventory Total units accounted for*