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Production Cost Report
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 6,400 units in process that were 100 percent complete as to materials and 70 percent complete as to labor and overhead. It started 29,400 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:
Prepare a production cost report for the month of August.
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