A production department’s output for the most recent month consisted of 12,500 units completed

A production department’s output for the most recent month consisted of 12,500 units completed and transferred to the next stage of production and 12,500 units in ending goods in process inventory. The unit in ending goods in process inventory were 65% complete with respect to both direct material and conversion costs. There were 1,500 units in beginning goods in process inventory, and they were 85% complete with respect to both direct materials and conversion costs. Calculate the equivalent unit of production for the month, assuming the company uses weight average method.

Equivalent units = transfer unit + (ending inventory x ratio)
Equivalent units = 12,500 + (12,500 x 65% ) = 20,625

We have used the ending inventory percentage in this question because of weigh average method .