 In this presentation, we will calculate cost per equivalent unit using the weighted average method. Last time we computed equivalent units of production, equivalent units of production for materials. Support Accounting Instruction by clicking the link below giving you a free month membership to all of the content on our website broken out by category, further broken out by course. Each course then organized in a logical reasonable fashion making it much more easy to find what you need than can be done on a YouTube page. We also include added resources such as Excel practice problems, PDF files and more like QuickBooks backup files when applicable. So once again click the link below for a free month membership to our website and all the content on it. And conversion. We're going to use this information now to apply out the actual costs. Note what we're talking about here are units as opposed to the costs. When we consider the journal entries, we want to consider dollars. We're thinking about dollars and we therefore need to do some type of conversion between units and costs. Here's going to be our given data. So our data that is given we're now talking about the dollar amounts. We're talking about the dollar amounts that were spent. We know what the dollar amounts are. What we don't know is how to apply those dollar amounts out between the various departments. So here's going to be our given data. Work in process in June 1st for the material costs has 6731 for conversion, 4,000 312 and then costs added to production in June the current month that we are in. So the beginning costs and what we incurred the 130,483 and the conversion is the 89 to 43. So here is our calculation. Then we have the working process for June 1st. We have the materials which is pulling these numbers down then the 6731 dollars that we're talking about now. Not the units and the conversion 4,000 312 that comes up with a total if we add these two up to 11,043. Then we have the costs that are added. Again, we're just pulling these numbers down the 130,483 and we're pulling down the 89,243. Those add up to 219,724. If we then sum everything up or total this out, we've got the total costs, the 11,43, the 219,726 for 237,69 and then the materials total costs for the beginning and what was added. 6731,1034,83 is the 137,214 and then the conversion. We have the beginning amount of 4,312 and then we added 89,243 for a total of 93,550. So there are our total costs that we need to now apply. We're going to have the equivalent units then considering the equivalent units from our prior slide. So that's the 6,534. We're now getting these equivalent units from our prior slide here. So 6,534 and for conversion to 6,237. So in other words, here's our total cost broken out between the materials and conversion in dollars. Now we're going to be using these equivalent units and applying these out per equivalent units, which we will later use to apply out our costs. So we have the equivalent units. If we divide those out then the cost per equivalent unit will be with this 137,214 divided by the 6,534, gives us the $21 and then if we take the... So now we have our dollar amount, our cost per equivalent unit and we can use that cost per equivalent unit as kind of an average to help us to apply out the costs to the appropriate department. In other words, we will calculate the costs for the units that were transferred out and we'll calculate the costs for the units that are still in the working process for a department.