QUESTION 6:

Fino Linens Inc. manufactures bed and bath linens. The bath linens department sews terry cloth into towels of various sizes. Fino uses the weighted average method. All manufacturing costs are added uniformly through 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

Required:

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

Units to account for:
Units in beginning work in process		__________
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		__________
Total units accounted for		__________

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

3. Calculate the unit cost for the bath linens department for August. Round your answer to the nearest cent. $__________ per unit

4. Calculate the per unit cost using the FIFO method. Round your answers to two decimal places, if necessary.

Equivalent units in beginning work in process	__________
Prior-period unit cost	$__________
FIFO equivalent units for materials	__________
FIFO unit cost	$__________
The weighted average unit cost	$__________

QUESTION 7:

The owner of Fino Linens Inc., a manufacturer of bed and bath linens, insisted on a formal report that provided all the details of the weighted average method. In the manufacturing process, all materials are added at the beginning. The following data are for the bath linens department for August:

Production:
Units in process, August 1, 40 percent complete	60,000
Units completed and transferred out	480,000
Units in process, August 31, 70 percent complete	40,000
Costs:
	Material		Conversion
WIP, August 1	$168,000		$ 49,300
Current costs	472,000		182,000
Total	$640,000		$231,300

Required:

a cost of production report for the bath linens department for August using the weighted average method. Round "Per unit cost" values to the four decimal places.

Bath Linens Department
Assembly Department Production Report
For March (Weighted Average Method)
Unit Information
Physical flow: Units to account for:
Units in beginning WIP	_____________
Units started	_____________
Total units	_____________
Units accounted for:
Units completed	_____________
Units in ending WIP	_____________
Total units	_____________
Units accounted for:
	Materials	Conversion
Completed	_____________	_____________
EWIP	_____________	_____________
Total	_____________	_____________
Cost Information
Costs to account for:
	Materials	Conversion
BWIP	$_____________	$_____________
Added	_____________	_____________
Total	$_____________	$_____________
Grand total	$_____________
Per unit cost:
Materials		$_____________
Conversion		_____________
Total		$_____________
Costs accounted for:
Units transferred out		$_____________
EWIP - material		_____________
Conversion		_____________
		$_____________