Problem 8-59 (Algo) Prepare a Production Cost Report and Show Cost Flows through Accounts: Weighted-Average Method (LO 8-3, 4)

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, 550 towels were in process and were 60 percent complete. The costs incurred were $1,207.

During the month, costs of $20,500 were incurred, 4,100 towels were started, and 275 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.

A. Prepare a production cost report; the company uses weighted-average process costing. (Round "Conversion costs" to 2 decimal places.)

RECYCLERS, INC.
Production Cost ReportWeighted Average
	Physical Units	Total Costs	Conversion Costs
Flow of Production Units
Units to be accounted for:
Beginning WIP inventory	not attempted
Units started this period	not attempted
Total units to be accounted for	0
Units accounted for:
Units completed and transferred out:	not attempted		not attempted
Units in ending WIP inventory	not attempted		not attempted
Total units accounted for	0		0
Costs to be accounted for:
Costs in beginning WIP inventory		not attempted	not attempted
Current period costs		not attempted	not attempted
Total costs to be accounted for		$0	$0
Cost per equivalent unit:
Conversion costs			not attempted
Costs accounted for:
Costs assigned to units transferred out:
Conversion costs		not attempted	not attempted
Costs assigned to ending WIP inventory:
Conversion costs		not attempted	not attempted
Total costs accounted for		$0.00	$0.00

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	not attempted	not attempted			Beg.bal.	not attempted	not attempted
not attempted	not attempted	not attempted	not attempted			not attempted	not attempted
not attempted	not attempted	not attempted	not attempted			not attempted	not attempted
This period's costs:					End.bal.
not attempted	not attempted	not attempted	not attempted
not attempted	not attempted	not attempted	not attempted
Ending inventory
Finished Goods Inventory
Beg.bal.	not attempted	not attempted
	not attempted	not attempted
	not attempted	not attempted
End.bal.