Nonuniform Inputs, Equivalent Units Terry Linens Inc. manufactures bed and bath

Question

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" Units completed and transferred out units in process, August 31, 62% complete 15,000 70,000 42,500 with respect to conversion costs. Required Calculate equivalent units of production for the bath linens department for August. Materials equivalent units of production equivalent units of production

Explanation / Answer

Equivalent unit = Unit transferred out +(ending inventory*percent completion)

Materials = 70000+(42500*100%) = 112500 equivalent units of production

Conversion = 70000+(42500*62%) = 96350 equivalent units of production

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