ECONOMICS

Detailed explanation-1: -Weighted Average EUP Calculation for Conversion Costs Again, all units transferred out during the current period are multiplied by 100 percent when calculating EUP for weighted average costing. Ending WIP units are multiplied by the percentage they are considered complete with respect to conversion costs.

Detailed explanation-2: -Both statements are true. The EUP will be the same under FIFO method and weighted average methos if there is no beginning work in process inventory. In process costing the cost per unit in a department is found by spreading the period’s production costs over the production activity.

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: -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.