Aussie yarn co is a us producer of woolen yarn made from

Reference no: EM13591063

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.

Reference no: EM13591063

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