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. i did A part , i want help in B
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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
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.
i did A part , i want help in B
![Required A
Required B
Prepare a production cost report; the company uses weighted-average process costing. (Round "Conversion costs" to 2
decimal places.)
RECYCLERS, INC.
Production Cost Report-Weighted Average
Physical Units
Conversion
Costs
Total Costs
Flow of Production Units
Units to be accounted for:
Beginning WIP inventory
550
Units started this period
4,100
Total units to be accounted for
4,650
Units accounted for:
Units completed and transferred out:
4,375
4,375
Units in ending WIP inventory
275
55
Total units accounted for
4,650
4,430
Costs to be accounted for:
Costs in beginning WIP inventory
$
1,207
2$
1,207
Current period costs
20,500
20,500
Total costs to be accounted for
2$
21,707
2$
21,707
Cost per equivalent unit:
Conversion costs
$
4.90
Costs accounted for:
Costs assigned to units transferred out:
Conversion costs
$
21,437.50
2$
21,437.50
Costs assigned to ending WIP inventory:
Conversion costs
269.50
269.50
Total costs accounted for
$
21,707.00
$ 21,707.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3820728f-d76d-4513-be3d-dff46ba9196a%2Feca3332a-fb07-41c4-a44a-2d50e7e537a5%2Ff2bu4kr_processed.jpeg&w=3840&q=75)
![Complete this question by entering your answers in the tabs below.
Required A
Required 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
Beg.bal.
This period's costs:
End.bal.
Ending inventory
Finished Goods Inventory
Beg.bal.
End.bal.
< Required A
Required B](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3820728f-d76d-4513-be3d-dff46ba9196a%2Feca3332a-fb07-41c4-a44a-2d50e7e537a5%2Fol7wso4_processed.jpeg&w=3840&q=75)
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