Terry Linens Inc. manufactures bed and bath linens. The bath linens department sews terry cloth into...

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*

25,500

Units completed and transferred out

83,000

Units in process, August 31, 60% complete*

34,000

* With respect to conversion costs.

Required:

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

Materials	equivalent units of production
Conversion	equivalent units of production

Solutions

Expert Solution

Particulars	Equiv Units of production
Materials	117,000.00
Conversion	103,400.00

Statement of Equivalent production
Particulars	Direct Materials	%completion	Equivalent mat	Conversion	%completion	Equivalent Conv
Units in process, August 1	25,500.00	100%	25,500.00	25,500.00	100%	25,500.00
Units started and completed = 83,000 - 25,500	57,500.00	100%	57,500.00	57,500.00	100%	57,500.00
Units in process, August 31	34,000.00	100%	34,000.00	34,000.00	60%	20,400.00
Equivalent Units			117,000.00			103,400.00

ekkarill92 answered 1 year ago

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