Production Report ra Inc. manufactures throw rugs. The throw rug department weav

Question

Production Report ra Inc. manufactures throw rugs. The throw rug department weaves cloth and yarn into throw rugs of various sizes. Alfombra uses the weighted average method. Materials are added uniformly throughout the weaving process. Irn August, Al department for August: Production Ifombra switched from FIFO to the weighted average method. The following data are for the throw nug Units in process, August 1, 60% complete Units completed and transferred out Units in process, August 31, 60% complete 40,000 120,000 40,000 Costs: WIP, August 1 $144,000 604,800 $748,800 Current costs Total The owner of Alfombra insisted on a formal report that provided all the details of the weighted average method. In the manufacturing process, all materials are added uniformly throughout the process Required: Prepare a production report for the throw-rug department for August using the weighted average method. If an amount box does not require an entry, leave it blank or enter zero "o". Round cost per equivalent unit value to the nearest cent and use rounded value in intermediate calculations. Alfombra Inc. Throw Rug Department Production Report For the Month of August (Weighted Average Method)

Explanation / Answer

Unit information: Physical flow: Units to account for: Units in Bwip 40000 Units started 120000 Total units to account for 160000 Units accounted for: Units completed 120000 Units in EWIP 40000 Total units accounted for 160000 Equivalent units: Units Units completed 120000 Units in EWIP 24000 Equivalent units 144000 Cost information : Costs to account for: Material BWIP 144000 Incurred during april 604800 Total costs to account for 748800 Equivalent units 144000 Cost per equivalent unit 5.2 Costs accounted for: Transferred out EWIP Total Costs 120000*5.2=624000 24000*5.2=124800 748800 Total costs accounted for 624000 124800 748800

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