Cost Components - Equivalent Units

Background information:

Work-in-process, beginning: 100 units, 30% complete
Units completed and transferred out: 400 units
Work-in-process, end: 300 units, 30% complete

Beginning cost: $10,000
Current cost: $15,000

FIFO equivalent units of production

1. (Work-in-process, beginning)*(% remaining to be completed) = 100 * 70% = 70
2. (Units completed) - (Work-in-process, beginning) = 400 - 100 = 300
3. (Work-in-process, end)*(% completed) = 300 * 30% = 90

Equivalent units (EU) = 70 + 300 + 90 = 460

Cost per equivalent unit = (Current cost) / (EU) = $15,000 / 460 = $32.61

Weighted-average equivalent units of production

1. Units completed = 400
2. (Work-in-process, end)*(% completed) = 300 * 30% = 90

Equivalent units (EU) = 400 + 90 = 490

Cost per equivalent unit = (Beginning cost + Current cost) / (EU) = ($10,000 +15,000) / 490 = $51.02