This is the number of units in beginning WIP inventory plus the number of units started and completed during the month. The total number of equivalent units at the end of the month needs to include the number of equivalent units in ending WIP inventory, as well.
This answer is incorrect because it does not include the units in beginning WIP. This is the number of equivalent units started and completed plus the number of equivalent units in ending work-in-process inventory for conversion costs. The number of equivalent units that were in beginning WIP inventory and the number of equivalent units that were completed during the month from the incomplete units in beginning work-in-process inventory should be included in the total equivalent units for the month, also.
This is the number of equivalent units for conversion costs using FIFO. This question asks for the number of equivalent units for conversion costs using the weighted average method.
Under the weighted average method, we need to include the work that was in BWIP as well as the work actually done during the period. As a result, the calculation of EUP has only two parts – units completed and units started that were in EWIP at the end of the period. The number of units completed was 4,000 (1,000 in BWIP and 3,000 started and completed) and the EUP to start EWIP was 400 (20% of 2,000). This gives a total of 4,400 EUP. The EUP under the weighted average method will never be lower than the EUP for FIFO.
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Using the weighted-average method, the equivalent units for conversion costs for November are