Asked by Christie Stephenie on Jul 24, 2024
Verified
Gilbert Corporation had 25,000 finished units and 8,000 units 35% complete. The equivalent units totaled 30,200.
Equivalent Units
A concept used in cost accounting to convert partially completed goods into a number of fully completed units for inventory and cost calculations.
- Familiarize oneself with the idea of equivalent units of production under a process costing methodology.
Verified Answer
MW
Maninder WarraichJul 31, 2024
Final Answer :
False
Explanation :
The equivalent units should equal the number of completed units plus the equivalent units of partially completed units. Therefore, the total equivalent units should be 25,000 + (8,000 x 35%) = 27,800. The given value of 30,200 is incorrect.
Learning Objectives
- Familiarize oneself with the idea of equivalent units of production under a process costing methodology.
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