The equivalent units of production (weighted-average method)for a department are:
A) The number of units transferred to the next department
B) The number of units transferred to the next department (or to finished goods) plus the equivalent units in the department's ending work in process inventory.
C) The equivalent units in the department's ending work in process inventory.
D) Equivalent units to complete beginning work in process inventory plus units started and completed during the period plus equivalent units in ending work in process inventory

Question

Quizplus · Accepted Answer

The weighted-average method calculates the equivalent units of production as the sum of the number of units transferred to the next department (or to finished goods) and the equivalent units in the department's ending work in process inventory. This method takes into account the work performed on units in beginning work in process inventory and the units started and completed during the period. Therefore, choice B is the best option.

The Equivalent Units of Production (Weighted-Average Method)for a Department Are