This video walks through an example of how to calculate the cost per equivalent unit when a company uses the weighted-average method for process costing.

To calculate the cost per equivalent unit, you divide the total costs incurred (this includes the costs in the beginning work-in-process inventory and/or any transferred-in costs, plus costs incurred during the period) by the number of equivalent units. To find the number of equivalent units you add the number of units completed and transferred out of the department to the number of units that are still in process at the end of the period, after multiplying the units still in process by the percentage completion (e.g., if there are 200 units still in process that are 70% complete with respect to direct materials, this would be 140 equivalent units still in process with respect to direct materials).