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


Beginning WIP $ $ $ $

Cost incurred during Sept.

Total $ $ $ $


Units completed

Equivalent unit ending WIP


Cost per equivalent unit $ $ $ $

Cost Reconciliation

Total cost to account for $

Cost of completed units $

Cost of ending WIP

Material $



Total cost accounted for $