Aussie Yarn Co. is a U.S. producer of woolen yarn made from wool imported from Australia. Raw wool is processed, spun, and finished before being shipped out to knitting and weaving companies. Material is added in the beginning of processing, and conversion costs are added evenly throughout processing.
Aussie began the month of August with 6,500 units in process that were 100 percent complete as to materials and 70 percent complete as to labor and overhead. It started 29,700 units into production during the month of August of which 5,400 remained in ending Work in Process inventory and were 50 percent complete as to conversion costs. The cost data are as follows:
Beginning Work in Process:
Direct materials $5,400
Direct labor 1,400
Manufacturing overhead 2,260
Costs added during August:
Direct materials $28,266
Direct labor 14,680
Manufacturing overhead 16,500
Prepare a production cost report for the month of August. (Round cost per equivalent unit to 2 decimal places, e.g. 5.25 and all other answers to 0 decimal places, e.g. 125.)
Unit Reconciliation
Units to account for
Units accounted for
Cost per Equivalent Unit Calculation
Material Labor Overhead Total
Cost
Beginning WIP $ $ $ $
Cost incurred during Sept.
Total $ $ $ $
Units
Units completed
Equivalent unit ending WIP
Total
Cost per equivalent unit $ $ $ $
Cost Reconciliation
Total cost to account for $
Cost of completed units $
Cost of ending WIP
Material $
Labor
Overhead
Total cost accounted for $