Equivalent Units; Applying CostsWeighted-Average Method

Fine Linens Inc. manufactures bed and bath linens. The bath linens department sews terry cloth into towels of various sizes. Fine uses the weighted average method. All materials are added at the beginning of the process. The following data are for the bath linens department for August:

Production:

Units in process, August 1, 60 percent complete 20,000

Units completed and transferred out 60,000

Units in process, August 31, 60 percent complete 20,000

Costs:

WIP, August 1 $11,520

Current costs 72,000

Total $83,520

:

1. physical flow analysis for the bath linens department for August.

2. Calculate equivalent units of production for the bath linens department for Aug.

3. Calculate the unit cost for the bath linens department for August.