Final answer:
The weighted average method is used to calculate the cost of units completed and transferred out, as well as the cost of units remaining in the ending WIP. In this case, the total equivalent units would be 1625 units.
Step-by-step explanation:
The weighted average method is used to calculate the cost of units completed and transferred out, as well as the cost of units remaining in the ending WIP (Work in Progress). To calculate the total equivalent units of production, we need to consider both the units started and completed, and the ending WIP.
In this case, we have 1000 units started and completed, and moved to the next process. Additionally, we have 500 units in the ending WIP that are 50% complete. To find the equivalent units, we multiply the number of units by the percentage of completion. The weight for each component is then determined by dividing the number of equivalent units by the total equivalent units.
Therefore, the total equivalent units would be: (1000 units × 100%) + (500 units × 50%) = 1000 units + 250 units = 1250 units.
The correct answer is c) 1625 units.