Asked by Junwei Zheng on May 08, 2024
Verified
Equivalent units of production is the number of units that could have been started and completed given the costs incurred during the period.
Equivalent Units
A concept in cost accounting used to allocate production costs to units of output, considering partially completed units as a fraction of full units.
Production Costs
Expenses directly incurred in the process of manufacturing goods, including materials, labor, and overhead.
- Understand the concept and calculation of equivalent units of production.
Verified Answer
EH
Elizabeth HazelwoodMay 14, 2024
Final Answer :
True
Explanation :
Equivalent units of production represent the number of complete units that could have been produced given the costs incurred during the period, including partially completed units. It is an important concept in process costing, which involves the production of identical, low-cost items in large quantities such as food production or chemical manufacturing.
Learning Objectives
- Understand the concept and calculation of equivalent units of production.
Related questions
Equivalent Units of Production Are Always the Same as the ...
Gilbert Corporation Had 25,000 Finished Units and 8,000 Units 35 ...
Equivalent Units Should Be Computed Separately for Direct Materials and ...
If 10,000 Units That Were 50% Completed Are in Process ...
Equivalent Units of Production Are the Number of Units That ...