Chapter 4 Research

In this video, I learned how to calculate the number of equivalent units in weighted-average costing system. The equivalent units of production will equal units transferred to the next department plus equivalent units in ending work in process inventory. I understood that goods transferred out of the department are 100% complete with respect to that department. The ending work in process inventory, however, is not complete yet; therefore, it is calculated by multiplying the number of units in the ending working in process inventory by percentage of the job done with respect to the materials and conversion. The tutorial video and chapter 4 in our textbook is clear and understandable. However, when I was doing homework I found it a bit hard to determine how much inventory was at the beginning of the month and how much left at the end of the month. Or how many equivalent units were there, or how many pounds I had to multiply. Even though the formulas were in front of me, I still had a feeling of misunderstanding or miscalculating something. The weighted-average method can be widely used in companies, which manufacture identical products such as chips, pasta, or cereal

Source: Wendy Tietz, PhD, CPA, CMA, AccountingintheHeadlines.com

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