Terry Linens, Inc., manufactures bed and bath linens. The bath linens department sews terry cloth into towels
Question:
Terry Linens, Inc., manufactures bed and bath linens. The bath linens department sews terry cloth into towels of various sizes. Terry uses the weighted average Nonuniform Input: eke method. All materials are added at the beginning of the process. The following data are for the bath linens department for August: LO3
Production:
Units in process, August 1, 25% complete* 10,000 Units completed and transferred out 60,000 Units in process, August 31, 60% complete* 20,000 Costs:
Work in process, August 1:
Materials $ 49,000 Conversion costs 2,625 Total © 51,625 Current costs:
Materials $351,000 Conversion costs 78,735 Total $429,735
*With respect to conversion costs Required:
1. Prepare a physical flow analysis for the bath linens department for August.
2. Calculate equivalent units of production for the bath linens department for August.
3. Calculate unit cost for materials, for conversion, and in total for the bath linens department for August.
4. Calculate the cost of units transferred out and the cost of ending work in process.
5. Prepare a cost reconciliation for the bath linens department for August.
Step by Step Answer: