Weighted Average Method Process Costing Cost per EU Theory
The computation of equivalent units (EU) examines partially completed units and converts them to a measure in terms of completed units. Then the cost per EU is computed using costs and the EU effort expended.
The weighted average method
adds beginning costs with costs incurred during the period to get the cost per EU.
adds costs in the ending inventory to costs in the beginning to get cost per EU.
adds costs in the beginning and ending inventory to the costs incurred during the period to get the cost per EU.
considers only the costs incurred for completed and transferred out units when computing the cost per EU.