How are equivalent units calculated?
A)multiplying the percentage of work done by the physical units
B)dividing physical units by the percentage of work done
C)multiplying the percentage of work done by the equivalent units of output
D)dividing equivalent units by the percentage of work done

Question

Quizplus · Accepted Answer

Equivalent units are calculated by multiplying the percentage of work done (or completion percentage) by the physical units in production. This method helps in determining the amount of work done on partially completed units, thereby allowing for a more accurate calculation of costs in processes where goods are not all completed at the same time.

How Are Equivalent Units Calculated