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, 200 towels were in process and were 60 percent complete. The costs incurred were $499 During the month, costs of $25,800 were inaurred, 4,300 towels were started, and 100 towels were still in process at the end of the month. At the end of the month, the towels were 20 percent complete Required: a. Prepare a production cost report; the company uses weighted-average process costing. (Round "Conversion costs" to 2 decimal places.) RECYCLERS, INC Production Cost Average of Production Units Compute Equivalent Units Physical Units Conversion Units to be accounted for Beginning WIP inventory Units started this period Total units to be accounted for 200 4,300 4.500 Unts accounted for 4.400 100 4.500 4.400 20 4.420 Units complated and transferred out: Units in ending WIP inventory Total units accounted tor Costs Total Costs Costs Costs to be accounted for. 499$ Coets in beginning WP invertory Current period costs 499 25,800 $ 26,299 26,299 25,800 Total coets to be accounted for Cost per equivalent unit Conversion costs 5.95 Costs accounted for. Costs assigned to units transferred out Conversion costs $ 26,180.00 26,180.00 Costs assigned to ending WIP inventory Conversion costs 119.00 119.00 Total costs accounted for 26,239$ 26,239