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Question: Weighted Average Method, Unit Costs, Valuing Inventories Byford Inc. produces a product that passes through two processes. During November, equivalent units were calculated using the weighted average method:
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. Conceptual Connection: 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.
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