The weighted average method of process costing

• combines the beginning inventory and current period production activity.

• determines

>- equivalent units of production by adding to the units in beginning inventory the units started and completed plus the equivalent units in ending inventory.

»- unit cost (per cost component) by dividing total (beginning plus current) cost by equivalent units.

transferred-out value by multiplying total units transferred out by the total cost per equivalent unit.

>• ending inventory value by multiplying the equivalent units of each cost component by the related cost per equivalent unit.

LO.1