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# Weighted Average Method - Process Costing System

Benal Inc. uses the weighted average method in it process costing system. The following data concern the operations of the company's processing department for a recent month.

Work in process, beginning:
units in process... 300
percent complete with respect to materials... 60%
percent complete with respect to conversion... 60%

Costs of the beginning inventory
materials cost... \$342
conversion cost... \$4,518
Units started into production during the month...22,000
units completed and transfered out... 21,800

Costs added to production during the month
materials cost... \$45,963
conversion cost... \$538,602

work in process, ending:
units in process... 500
percent complete with respect to materials... 50%
percent complete with respect to conversion...20%

Using the weighted average method:
a. Determine the equivalent units of production for materials and conversion costs.
b. Determine the cost per equivalent unit for materials and conversion costs.
c. Determine the cost of units transfered out of the department during the month.
d. Determine the cost of ending work in process inventory in the department.

#### Solution Summary

The solution explains how to calculate the equivalent units, cost per equivalent units, cost of goods transferred and cost of ending work in process inventory using the weighted average method

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