Equivalent Units CalculationsWeighted Average Method

Ferris Corporation makes a powdered rug shampoo in two sequential departments, Compounding and Drying. Materials are added at the beginning of the process in the Compounding Department. Conversion costs are added evenly throughout each process. Ferris uses the weighted average method of process costing. In the Compounding Department, beginning work in process was 2,000 pounds (70% processed), 18,500 pounds were started in process, 18,000 pounds transferred out, and ending work in process was 30% processed.

Calculate equivalent units for March 2016 for the Compounding Department.

Ferris Corporation Flow of Units and Equivalent Units Calculation, March 2016
		Equivalent Units
		% Work done	Direct Materials	% Work Done	Conversion Costs
Complete/Transferred
Ending Inventory
Total		X		X