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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 6,000 units in process that were 100 percent complete as to materials and 70 percent complete as to labor and overhead. It started 29,000 units into production during the month of August of which 5,000 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 $5,000Direct labor 1,300Manufacturing overhead 1,800$8,100
Costs added during August:Direct materials $26,500Direct labor 12,350Manufacturing overhead 14,450$53,300
RequiredPrepare a production cost report for the month of August.
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