ECONOMICS

Detailed explanation-1: -When the weighted-average method of process costing is used, a department’s equivalent units are computed by: adding the units transferred out to the equivalent units in ending inventory. The Assembly Department started the month with 35, 000 units in its beginning work in process inventory.

Detailed explanation-2: -Option b is the correct answer. The job order costing calculates the unit cost of production in one job by averaging the total cost of the job, and process costing also calculates it by using the average computed by dividing the total cost of production in one process with the total units produced by the process.

Detailed explanation-3: -To use the weighted average model, one divides the cost of the goods that are available for sale by the number of those units still on the shelf. This calculation yields the weighted average cost per unit-a figure that can then be used to assign a cost to both ending inventory and the cost of goods sold.

Detailed explanation-4: -Under weighted average process-costing, the unit cost is based on cost of opening inventory that is added to the cost of current period. In addition, there is no distinction made between the opening inventory and purchases of inventory in the current period in order to provide overall average cost per unit.