Problem:
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
* With respect to conversion costs.
Required:
Calculate equivalent units of production for the bath linens department for August.