procedure for computing the unit cost of a process. Beginning work-in-process inventory costs are added to the costs of the current period, then a weighted average is obtained by dividing the combined costs by equivalent units.Thus there is only one average cost for goods completed. Equivalent units under weighted average costing may be computed as follows:

Units completed + (ending work-in-process x degree of completion (%)). To illustrate, the following data relate to the activities of Department A during the month of January:

                                                                                                     Units
Beginning work-in-process (100% complete
as to materials; 2/3 complete as to conversion)                                 1500
Started this period                                                                            5000
Completed and transferred                                                                5500
Ending work in process (100% complete as
to materials; 6/10 complete as to conversion)                                    1000

Equivalent production in Department A for the month is computed, using weighted average costing, as follows:

                                                         Materials                  Conversion Costs
Units completed and transferred             5500                               5500
Ending work in process
Materials (100%)                                  1000
Conversion costs (60%)                                                                600
Equivalent production ____
                                                           6500                               6100