Given the following information, determine the equivalent units of ending work in process for materials and conversion under the weighted-average method:

beginning inventory of 2,500 units is 100% complete with regard to materials and 60% complete with regard to conversion

18,000 units were started during the period

17,500 units were completed and transferred

ending inventory is 100% complete with materials and 65% complete with conversion

To determine the equivalent units of ending work in process (WIP) for **materials** and **conversion costs** under the **weighted-average method**, we need to use the following formula:

\[
\text{Equivalent Units of Production} = \text{Units Transferred Out} + (\text{Ending WIP Units} \times \text{Percentage Completion})
\]

### Step 1: Understand the given information
- **Beginning Inventory**: 2,500 units (100% complete for materials, 60% complete for conversion)
- **Units started during the period**: 18,000 units
- **Units completed and transferred out**: 17,500 units
- **Ending Inventory**: 3,000 units (100% complete for materials, 65% complete for conversion)

To get the ending inventory, we use the total units available for the period:

\[
\text{Total Units} = \text{Beginning Inventory} + \text{Units Started} = 2,500 + 18,000 = 20,500 \text{ units available}
\]
\[
\text{Ending Inventory} = \text{Total Units} - \text{Units Completed and Transferred Out} = 20,500 - 17,500 = 3,000 \text{ units in Ending Inventory}
\]

### Step 2: Calculate the equivalent units for materials
For materials, the ending WIP is **100% complete**, meaning all the materials required have been added.

\[
\text{Equivalent Units for Materials} = \text{Units Transferred Out} + (\text{Ending Inventory Units} \times 100\%)
\]
\[
= 17,500 + (3,000 \times 1) = 17,500 + 3,000 = 20,500 \text{ equivalent units for materials}
\]

### Step 3: Calculate the equivalent units for conversion
For conversion costs (labor and overhead), the ending WIP is **65% complete**.

\[
\text{Equivalent Units for Conversion} = \text{Units Transferred Out} + (\text{Ending Inventory Units} \times 65\%)
\]
\[
= 17,500 + (3,000 \times 0.65) = 17,500 + 1,950 = 19,450 \text{ equivalent units for conversion}
\]

### Final Answer:
- **Equivalent units for materials**: 20,500
- **Equivalent units for conversion**: 19,450

Would you like more details on the process, or do you have any questions?

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Here are five related questions to expand on this topic:
1. How does the weighted-average method differ from the FIFO method in calculating equivalent units?
2. Why are materials and conversion costs treated separately in process costing?
3. How would the calculation change if the beginning inventory had different completion percentages?
4. What impact do equivalent units have on the cost per unit calculation?
5. How do different percentages of completion for conversion costs affect the overall cost of production?

**Tip**: When using the weighted-average method, always account for both completed units and the degree of completion for the units in ending inventory to accurately calculate equivalent units.

Given the following information, determine the equivalent units of ending work in process for materials and conversion under the weighted-average method: beginning inventory of 2,500 units is 100% complete with regard to materials and 60% complete with regard to conversion, 18,000 units were started during the period, 17,500 units were completed and transferred, ending inventory is 100% complete with materials and 65% complete with conversion.

Learn how to calculate the equivalent units of production for materials and conversion costs using the weighted-average method. This example explores a process costing scenario with detailed calculations for ending inventory, units transferred, and completion percentages.

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