ter 6 Homework Equivalent Units, Unit Cost, Weighted Average Alfombra uses the A
ID: 2545351 • Letter: T
Question
ter 6 Homework Equivalent Units, Unit Cost, Weighted Average Alfombra uses the Alifombra Inc. manufactures throw rugs. The weighted average method. Materials are added uniformly throughout the weaving process. In August, Alfombra average method. The following data are for the throw rug department for August throw rug department weaves cloth and yarn into throw rugs of various sizes. Units process, August , 60% complete Units completed and transferred out Units in process, August 31, 60% complete 40,000 120,000 40,000 Costs: $144,000 604,800 $748,800 WIP, August 1 Current costs Total Required: 1. Prepare a physical flow analysis for the throw-rug department for August Alfonnbra Inc Physical Flow Analysis for the Month of August Unts to Unts n begning work n process (60% cornglete) Units started duning the pernod 40,000 120,000 160,000 Total units to account for Units accounbed for Unts completed and ransferred out Started and completed From beginnng work in process 80.000 40000 120,000 Unts in ending work in process (60% completa) Total units accounted for Previous Next e),Explanation / Answer
FIFO equivalent units for materials = Beginning units in process * (100% - 60%) + units transferred out + Ending work in process * completion percentage
=40000 * 0.40 + (120000 - 40000 from beginning work in process) + 40000 * 0.6
=16000 + 80000 + 24000
=120000 units
FIFO unit cost = current cost / total equivalent units
= 604800 / 120000 units
= $5.04
Weighted average unit cost = [work in process cost,Aug 1 + current costs] / total equivalent units
= [144000 + 604800] / 144000 units
= $748800 / 144000 units
= $5.2
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