2. Calculate equivalent units of production for direct materials and conversion costs. Equivalent Units Direct Materials Conversion Costs 3. Compute unit cost under weighted average. Unit direct materials cost Unit conversion costs Total unit cost 4. Calculate the cost of goods transferred to Welding at the end of the month. Calculate the cost of ending inventory. Cost of goods transferred out Ending WIP 5. Prepare the journal entry that transfers the goods from Cutting to Welding.