Asked by Laura Arrunada on May 22, 2024
Verified
When there is no beginning work in process and materials are entered at the beginning of the process equivalent units of materials are the same as the units started into production.
Equivalent Units
A concept used in cost accounting to represent the amount of work done on incomplete units, expressed in terms of fully completed units.
Work In Process
Items in a manufacturing process that are not yet finished products, including raw materials, labor in progress, and overhead costs.
- Calculate and interpret equivalent units of production in process costing.
Verified Answer
MM
Manuel MolinaMay 24, 2024
Final Answer :
True
Explanation :
When there is no beginning work in process, all the units started into production are equivalent to the units of materials entered at the beginning of the process. Hence, the equivalent units of materials are the same as the units started into production.
Learning Objectives
- Calculate and interpret equivalent units of production in process costing.