Objective: Explain how nonuniform inputs and multiple processing departments affect process costing

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

Required:

Calculate equivalent units of production for the bath linens department for August.

Provide work/step by step process