Levitt Company uses a process costing system. All direct materials are added at the beginning of the process. Levitt's production quantity schedule for November is reproduced below.
Work-in-process on November 1 (conversion 60% complete) 1,000
Units started during November 5,000
Total units to account for 6,000
Units completed and transferred out from beginning inventory 1,000
Units started and completed during November 3,000
Work-in-process on November 30 (conversion 20% complete) 2,000
Total units accounted for 6,000
Using the weighted-average method, the equivalent units for conversion costs for November are:
The weighted-average method is used.