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weighted-average method

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.

Units
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

Reference: 4-15

Using the weighted-average method, the equivalent units for conversion costs for November are:

4,000 units
4,400 units
3,800 units
3,400 units

Solution Summary

The weighted-average method is used.

$2.19