Nonuniform Inputs, Equivalent Units

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 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, 25% complete*	12,000
Units completed and transferred out	86,000
Units in process, August 31, 66% complete*	32,750
* With respect to conversion costs.

Required:

Calculate equivalent units of production for the bath linens department for August.

Materials	fill in the blank 1 equivalent units of production
Conversion	fill in the blank 2 equivalent units of production

(Appendix 6A) First-In, First-Out Method; Equivalent Units

Lawson Company produces a product where all manufacturing inputs are applied uniformly. Lawson produced the following physical flow schedule for March:

Units to account for:
Units in BWIP (40% complete)	17,000
Units started	44,000
Total units to account for	61,000
Units accounted for:
Units completed:
From BWIP	17,000
Started and completed	35,000
	52,000
Units, EWIP (75% complete)	9,000
Total units accounted for	61,000

Required:

Prepare a schedule of equivalent units using the FIFO method.

Lawson Company
Schedule of equivalent units
(FIFO method)
Units started and completed	fill in the blank 1
Units in BWIP x fraction to be completed:	fill in the blank 2
Units in EWIP x fraction complete:	fill in the blank 3
Equivalent units of output	fill in the blank 4