A company's beginning Work in Process inventory consisted of 40,000 units that were 90% complete with respect to direct labor. A total of 110,000 were finished during the period and 45,000 remaining in Work in Process inventory were 50% complete with respect to direct labor at the end of the period. Using the weighted-average method, the equivalent units of production with regard to direct labor were:

Using the weighted-average method, the equivalent units of production with regard to direct labor were 132,500

Explanation:

Units % of Completion EQUP

Completed 110,000 100 110,000

Ending Work in

Process

Inventory 45,000 50% 22,500

145,000 132,500

Using the weighted-average method, the equivalent units of production with regard to direct labor were 132,500

This is the key feature of weighted average method. The number of equivalent units is calculated without making a distinction as to whether the activity occurred in the current accounting period or preceeding period.