ECONOMICS

Detailed explanation-1: -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-2: -To calculate cost per equivalent unit by taking the total costs (both beginning work in process and costs added this period) and divide by the total equivalent units.

Detailed explanation-3: -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-4: -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.