Equivalent Units, Unit Cost, Weighted Average Alfombra Inc, manufactures throw rugs. The throw rug department weaves cloth and yarn into throw rugs of various sizes. Alfombra uses the weighted average method. Materials are added uniformly throughout the weaving process. In August, Alfombra switched from FIFO to the weighted average method. The following data are for the throw rug department for August: Production: Units in process, August 1, 60% complete 40,000 Units completed and transferred out 120,000 Units in process, August 31, 60% complete 40,000 Costs: WIP, August 1 $144,000 Current costs 604,800 Total $748,800 Required: 1. Prepare a physical flow analysis for the throw-rug department for August. Alfombra Inc. Physical Flow Analysis For the Month of August Units to account for: Units in beginning work in process (60% complete) Units started during the period Total units to account for Units accounted for: Units completed and transferred out: Started and completed From beginning work in process Units in ending work in process (60% complete) Total units accounted for 2. Calculate equivalent units of production for the throw-rug department for August. equivalent units 3. Calculate the unit cost for the throw-rug department for August. Round your answer to the nearest cent. per unit 4. Show that the cost per unit calculated in Requirement 3 is a weighted average of the FIFO cost per equivalent unit in BWIP and the FIFO cost per equivalent unit for August. If required, round your answers to two decimal places. Hint: The weights are in proportion to the number of units from each source. Equivalent units in beginning work in process Prior period unit cost FIFO equivalent units for materials FIFO unit cost The weighted average unit cost