Byford Inc. produces a product that passes through two processes. During November, equivalent units were calculated using the weighted average method:
Units completed .................... 196,000
Add: Units in EWIP 3 Fraction complete
(60,000 3 40 percent) ................ 24,000
Equivalent units of output (weighted average) ..... 220,000
Less: Units in BWIP 3 Fraction complete
(50,000 3 70 percent) ................ 35,000
Equivalent units of output (FIFO) ........... 185,000
The costs that Byford had to account for during the month of November were as follows:
BWIP.............$ 107 000
Costs added ............ 993,000
Total ............. $1,100,000

Required:
1. Using the weighted average method, determine unit cost.
2. Under the weighted average method, what is the total cost of units transferred out? What is the cost assigned to units in ending inventory?
3. Bill Johnson, the manager of Byford, is considering switching from Weighted Average to FIFO. Explain the key differences between the two approaches and make a recommendation to Bill about which method should be used.