TheThe following data reports on the July production activities of the Molding department at Ash Company:Total cost of units started during the month of July: $24,000Total units completed and transferred to the next department during July: 6,000 unitsEnding Work-in-Process Inventory, July 31: 3,000 units, 40% completedUnits in beginning Work-in-Process Inventory on July 1: 2,000 units, 60% completedHow to calculate equivalent units in production cost report using the weighted average methodThe weighted average method divides the total costs of all units by the total number of units produced to calculate the cost per unit. It calculates the average cost of the beginning Work-in-Process Inventory with the costs of the current period to determine the average cost per unit. The calculation of equivalent units of production by the weighted average method includes the following steps:Step 1: Calculation of equivalent units completed and transferredEquivalent units completed and transferred = Units completed and transferred + (Ending Work-in-Process Inventory x Percentage of completion)Equivalent units completed and transferred = 6,000 + (3,000 x 40%) = 7,200Step 2: Calculation of equivalent units of beginning Work-in-Process InventoryEquivalent units of beginning Work-in-Process Inventory = Beginning Work-in-Process Inventory x Percentage of completionEquivalent units of beginning Work-in-Process Inventory = 2,000 x 60% = 1,200Step 3: Calculation of total equivalent unitsTotal equivalent units = Equivalent units completed and transferred + Equivalent units of beginning Work-in-Process InventoryTotal equivalent units = 7,200 + 1,200 = 8,400The production cost report using the weighted average methodThe production cost report using the weighted average method is prepared by combining the cost of the beginning Work-in-Process Inventory with the costs of the current period. The production cost report includes the following steps:Step 1: Calculation of the cost per equivalent unitCost per equivalent unit = Total Cost of Units started during the month / Total Equivalent UnitsCost per equivalent unit = $24,000 / 8,400 = $2.86Step 2: Calculation of the cost of beginning Work-in-Process InventoryCost of beginning Work-in-Process Inventory = Equivalent Units of beginning Work-in-Process Inventory x Cost per equivalent unitCost of beginning Work-in-Process Inventory = 1,200 x $2.86 = $3,432Step 3: Calculation of the cost of units completed and transferredCost of units completed and transferred = Equivalent units completed and transferred x Cost per equivalent unitCost of units completed and transferred = 7,200 x $2.86 = $20,592Step 4: Calculation of the cost of ending Work-in-Process InventoryCost of ending Work-in-Process Inventory = (Ending Work-in-Process Inventory x Percentage of completion) x Cost per equivalent unitCost of ending Work-in-Process Inventory = (3,000 x 40%) x $2.86 = $3,432Step 5: Summary of total costTotal cost = Cost of beginning Work-in-Process Inventory + Cost of units completed and transferred + Cost of ending Work-in-Process InventoryTotal cost = $3,432 + $20,592 + $3,432 = $27,456Therefore, the total production cost report for Molding department using the weighted average method is $27,456.