According to this method, units lastly entering in the process are first to be completed. This assumption will definitely have a different impact on the cost of completed units and closing inventory of work in progress. The completed units will be shown at their current cost and the closing inventory of work-in-progress will continue to appear at the cost of opening inventory of work-in- progress along with current cost of work in progress, if any. S5 (D) Weighted Average Method: When two or more dissimilar products are manufactured in the same process, a simple average process cost may give misleading results. In such a case, a close study of production and costs of each type of product is required to be made and the relative importance of one as compared others should be indicated in terms of points to be used as a common denominator. In order to find out the cost of production under weighted average method, statements of weighted average production in terms of points and cost for each type of product should be prepared. The computation of weighted average process cost sheet will be easy, if due consideration to weights or points are given. Illustration: From the following details prepare statement of equivalent production, statement of cost, statement of evaluation and Process Account by following average cost method: Opening WIP (2000 Units) Materials (100% Complete) Rs. 7,500 Labour (60% Complete) Rs. 3,000 Overhead (60% Complete) Rs. 1,500 Units introduced into the process - 8,000 There are 2,000 units in the process. The stage of completion is estimated to be: Materials 100% Complete Labour 50% Complete Overhead 50% Complete 8,000 units are transferred to the next process The Process costs for the period are: Materials: Rs. 1,00,000 Labour: Rs. 78,000 Overheads: Rs. 39,000