Answer (D) is correct . Under the weighted-average method, work in the previous period on the beginning inventories is included along with the work added this period. Thus, the only difference between the FIFO calculations and the weighted-average calculation is the equivalent units for the beginning inventory. The 4,000 completed units (1,000 BWIP + 3,000 started this period) equal 4,000 equivalent units. The 2,000 units in EWIP are equivalent to 400 units (2,000 units ¡Á 20% complete). Thus, there are 4,400 conversion cost equivalent units.Answer (A) is incorrect because The number of 3,400 units consist of the units started and completed in November plus the 20% of work-in-process complete as to conversion costs (3,000 + 400).
Answer (B) is incorrect because The number of 3,800 units equal the 400?units in BWIP needed for completion plus the units started and completed in November plus the 20% of work-in-process complete as to conversion costs (400 + 3,000 + 400).
Answer (C) is incorrect because The number of 4,000 units equal the units completed and transferred out from BI plus units started and completed during November (1,000 + 3,000).
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Using the weighted-average method, Levittown’s equivalent units for conversion costs for November are
