It is necessary to calculate equivalent units of production in a department because
A) a physical count of units is impossible.
B) some units worked on in the department are not fully complete.
C) the physical units in the department are always 100% complete.
D) at times a department may use a job order cost system and then switch to a process cost system.

Question

Quizplus · Accepted Answer

Equivalent units of production are necessary to calculate because in a process cost system, some units in a department may not be fully complete at the end of the period. Therefore, the equivalent units of production calculation takes into account the partially completed units and gives a more accurate picture of the amount of work done in the department.

It Is Necessary to Calculate Equivalent Units of Production in a Department