In weighted-average method of process costing, the number of equivalent units of production is the sum of the complete and partial units of production expressed in terms of whole units.
To compute the number of equivalent units using weighted-average method, the units in ending work in process inventory that are complete and the equivalent units of production are computed separately.
The formula for calculating equivalent units is as follows:
Equivalent units = Complete units + (Ending work in process × Percentage of completion)
Using the data provided in the question, the equivalent units of production are:
Complete units = 150Ending work in process = 215Percentage of completion = 60%Equivalent units = Complete units + (Ending work in process × Percentage of completion)= 150 + (215 × 0.60)= 150 + 129= 279
Therefore, the number of equivalent units is 279.