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 percent complete* 10,000 Units completed and transferred out 60,000 Units in process, August 31, 60 percent complete* 20,000

Costs: Work in process, August 1: Materials $49,000 Conversion costs 2,625 Total $51,625

Current costs: Materials $351,000 Conversion costs 78,735 Total $429,735

*With respect to conversion costs

Required

1. Prepare a physical flow schedule for the Bath Linens Department for August. 2. Calculate equivalent units of production for the Bath Linens Department for August. 3. Calculate unit cost for materials, for conversion, and in total for the Bath Linens Department for August. 4. Calculate the cost of units transferred out and the cost of ending work in process. 5. Prepare a cost reconciliation for the Bath Linens Department for August. 6. Prepare a cost of production report for the Bath Linens Department for August using the weighted average method.