In process costing, ________ is/are found by taking the number of partially completed physical units and multiplying it by the percentage of the process completed.
A)Cost of Goods Sold
B)equivalent units
C)fixed Manufacturing Overhead costs
D)conversion costs

Question

Quizplus · Accepted Answer

Equivalent units are found by taking the number of partially completed physical units and multiplying it by the percentage of the process completed. This is necessary in process costing because it is often difficult to track actual costs for each individual unit as they move through the different stages of production. By calculating equivalent units, managers can better understand the cost of production for a given period.

In Process Costing, ________ Is/are Found by Taking the Number