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* 10,000

Units completed and transferred out 60,000

Units in process, August 31, 60% complete* 20,000

* 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

please don't skip steps, show all work

For Material 80,000

For Conversion 72,000

Explanation:

The computation of equivalent units of production for the bath linens department for August is shown below:-

                                     Materials               Conversion  

Units completed and

transferred out              60,000                   60,000

Units in process,

August 31                      20,000                   12,000

                                                               (20,000 × 60%)

Equivalent units of

production                   80,000                   72,000

Therefore to reach out the equivalent units of production we simply added the units completed and transferred out with Units in process Aug 31 of material and conversion.

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