WEIGHTED AVERAGE METHOD, UNIT COST, VALUING INVENTORIES Milton Inc. manufactures products that pass through two or more processes. During April, equivalent units were computed using the weighted average method:

Units completed 18,000 Units in EWIP 3 Fraction complete (12,000 3 60 percent) 7,200 Equivalent units of output 25,200 April’s costs to account for are as follows:

BWIP (40 percent complete) $ 3,360 Materials 30,000 Conversion cost 12,000 Total $45,360 Required:
. Calculate the unit cost for April using the weighted average method.
. Using the weighted average method, determine the cost of EWIP and the cost of the goods transferred out.
Exercise