Asked by Crystal Weaver on May 07, 2024

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Equivalent units are calculated by

A) multiplying the percentage of work done by the equivalent units of output.
B) dividing physical units by the percentage of work done.
C) multiplying the percentage of work done by the physical units.
D) dividing equivalent units by the percentage of work done.

Equivalent Units

A concept used in process costing that converts partially completed units into a number of full units, facilitating cost allocation.

  • Evaluate and clarify equivalent units of production in the realm of process costing.
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DM
Damaris MartinezMay 12, 2024
Final Answer :
C
Explanation :
Equivalent units are calculated by multiplying the physical units with the percentage of work done. This is because equivalent units represent the total amount of work done on partially completed units, so it takes into account both the physical units and the percentage of work completed.