 In this presentation, we will take a look at equivalent units of production using the weighted average method. This will be our given data up top. We have the units. We have the percent completed materials. We've got the percent completed conversion. Then we have the work in process as of June 1st, which is going to be the beginning of our time period, the month in this case. Units started into production in June. The units that we then started, units completed and transferred out of the Department A during June. So these are the units that went out and then the work in process for June 30th. That's what's still going to be in the process. You can see this would be our standard kind of calculation. We would say, okay, we have the beginning units of the 330. Then we started another 6600 and what is still in there at the end. You can think of as basically a physical count. We could try to count basically in essence the units in some format that are still there 5940 and that's going to give us the 990. Now, of course, part of our problem here is that these units aren't totally completed. So we're talking about units here, whether they be completed or not. And then we're going to be considering the portion that has been completed. We're going to use some type of estimate to determine how much has been completed or not of these units. So in this case, we're going to have to use some type of estimate to do this. So note that in practice, we would have to use some type of estimate to come up with these percentages. So if you're asking, where did you come up with these percentages? They're usually given in a book problem. In practice, of course, we would have to take the trade that we are in and then determine what an appropriate percentage for the unit completion would be used given the practice of that trade or business. So then we're going to have the computation of the units of production. We're going to have the units completed and transferred out of the department in June. And if we have, that's going to be the 5940 for the materials. So we're talking about the materials, we're looking at that same 5940, considering it in terms of materials and in certain in terms of conversion, because we're considering now equivalent units, not total units, not units as if they're whole, but equivalent units with regard to their two components. Remember that there are three components we typically think about when we think about inventory. That's going to be the materials and then the overhead and then the labor. We here are combining together the conversion, which is the labor and the overhead and having the materials broke out separately. There's a couple of reasons why we might be able to do that. One is that, you know, the labor could actually be a low, given the fact that we're in a production process, there might be little labor, but in any case, that's why we have two items that we're breaking out and we're considering the level of completeness based on those two different items. And then we have work in process in June. So work in process in June at the end of the time period is 594. How did we get to that? Well, it's going to be the 990 times 0.6 or 60%, 594. And then for the conversion, 297. So we've got 990 times 0.3. That's going to be the 297. And that's going to give us the equivalent units of production in the department during June, which is going to be the 6534, which is the 5940 plus the 594 and the 6237, which is the 5940 plus the 297. Note what we are not doing in this process. We're not breaking out the beginning work in process as we would do under a first in, first out method because we're using a weighted average method. So what we have here, once again, units completed and transferred out of the department in June. So these are the activities that were completed and transferred under a first in, first out method. We would assume that part of the cost of those, of course, were started in the prior time period and we'd have to break out the current cost just for this time period. But in this case, we're kind of averaging those out. We're taking these amounts, even though part of the cost was from the prior time period and we're kind of averaging them out. And then we're taking the work in process for June, which is the 594. So here's the 594 and we are applying out the percentages here of the 990 for the materials and the conversion. So that means this is the stuff that was transferred out. This is the stuff that's still in work in process. And if you were considering this for my first in, first out standpoint, you would think that these wouldn't be completed, at least with regard to conversion. They would still be in process and some of the costs would be applied out later. But again, between the beginning inventory and the Indian inventory up here and down here, we're kind of averaging those out in the weighted average method. And therefore, this is a bit simplified, a bit easier of a calculation than we'll see when we do the first in, first out method, where we would have to break out the portion of the beginning inventory and the ending inventory, assuming a first in, first out flow assumption.