A company uses a process costing system. Its Weaving Department completed and transferred out 120,000 units during the current period. The ending inventory in the Weaving Department consists of 40,000 units ( \( 20 \% \) complete with respect to direct materials and \( 60 \% \) complete with respect to conversion costs). Determine the equivalent units of production for the Weaving Department for direct materials and conversion costs assuming the weighted average method.

To determine the equivalent units of production for direct materials and conversion costs in the Weaving Department using the weighted average method, we need to account for the units transferred out and the ending inventory. For direct materials, we have: - Units completed and transferred out: 120,000 - Ending inventory: 40,000 units at \( 20\% \) complete - Equivalent units for ending inventory = \( 40,000 \times 20\% = 8,000 \) Total equivalent units for direct materials = \( 120,000 + 8,000 = 128,000 \) units. For conversion costs, we have: - Units completed and transferred out: 120,000 - Ending inventory: 40,000 units at \( 60\% \) complete - Equivalent units for ending inventory = \( 40,000 \times 60\% = 24,000 \) Total equivalent units for conversion costs = \( 120,000 + 24,000 = 144,000 \) units. So, the final equivalent units of production are: - Direct materials: 128,000 units - Conversion costs: 144,000 units.