QUESTION 2 Atap Rumbia Sdn Bhd (ARSB) manufactures throw rugs. The throw rug department weaves cloth and yarn into throw rugs of various sizes. ARSB uses the weighted average method. Materials are added uniformly throughout the weaving process. In August, ARSB 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 RM144,000 Current Costs RM604,800 Total RM748,800 REQUIRED: (a) Prepare a physical flow analysis for the throw rug department for August. (b) Calculate equivalent units of production for the throw rug department for August. (c) Calculate the unit costs for the throw rug department for August. (d) Show that the cost per unit calculated in (c) is a weighted average of the FIFO cost per equivalent unit in BWIP and the FIFO cost per equivalent unit for August. (Hint: the weights are in proportion to the number of units from each source). (e) The owner of ARSB insisted on a formal report that provided all the details of the weighted average method. In the manufacturing process, all materials are added uniformly throughout the process. Prepare a production report for the throw rug department for August using the weighted average method