WEIGHTED AVERAGE METHOD, UNIT COSTS, VALUING INVENTORIES Walser Inc. produces a product that passes through two processes. During February, equivalent units were calculated using the weighted average method:

Units completed 150,000 Add: Units in EWIP 3 Fraction complete (50,000 3 40 percent) 20,000 Equivalent units of output (weighted average) 170,000 Less: Units in BWIP 3 Fraction complete (25,000 3 70 percent) 17,500 Equivalent units of output (FIFO) 152,500 The costs that Walser had to account for during the month of February were as follows:

BWIP $ 105,000 Costs added 993,000 Total $1,098,000 Required:

. Using the weighted average method, calculate unit cost.

. Under the weighted average method, what is the total cost of units transferred out?

What is the cost assigned to units in ending inventory?

Exercise