Equivalent units are calculated by multiplying the number of physical units by their percentage of completion.This is how equivalent units are calculated.

Question

Quizplus · Accepted Answer

Equivalent units are calculated by taking the number of physical units that are partially completed (i.e., not yet fully processed) and multiplying them by the percentage of completion to convert them into equivalent completed units. This calculation reflects the fact that partially completed units are not yet fully equivalent to completed units in terms of labor and materials costs, so it is necessary to adjust for the differences in order to accurately measure the total amount of work done.

Equivalent Units Are Calculated by Multiplying the Number of Physical