Problem 8-58 (Static) Prepare a Production Cost Report and Show Cost Flows through Accounts: FIFO Method (LO 8-4,5) 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 FIFO 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 Required A B Prepare a production cost report; the company uses FIFO process costing. (Round "Cost per equivalent unit" to 2 decimal places.) Total Costs Conversion Costs RECYCLERS, INC. Production Cost Report-FIFO Physical Units Flow of Production Units Units to be accounted for: Beginning WIP inventory 3001 Units started this period 2,700 Total units to be accounted for 3,000 Units accounted for: Units completed and transferred out: From beginning inventory 300 Started and completed currently 2,550 Units in ending WIP inventory 150 Total units accounted for 3,000 120 2,550 30 2,700 $ 576 $ 10,800 $ 11,376 $ 576 10,800 11,376 $ 4.00 $ 576 $ 576 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 Total costs from beginning inventory Current costs of units started and completed: Conversion costs Total costs of units started and completed Total costs of units transferred out Costs assigned to ending WIP inventory: Conversion costs Total ending WIP inventory Total costs accounted for $ 576 10,200 10,200 $ 10,200 $ 10,776 $ 0 $ 10,776 $ 10,776 Required A Required B > Problem 8-58 (Static) Prepare a Production Cost Report and Show Cost Flows through Accounts: FIFO Method (LO 8-4,5) 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 FIFO 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 Required A B Show the flow of costs through T-accounts. Assume that current period conversion costs are credited to various payables. Work in Process Various Payables 0 Beginning inventory Conversion costs Beg.bal. This period's costs: End.bal. Ending inventory Beg.bal. Finished Goods Inventory 0 11,256 0 End.bal. 11,256