Equivalent units are calculated by
A)multiplying the physical number of units by the percentage of completion.
B)adding the physical number of units with the number of units completed last period.
C)subtracting the physical units finished this period from the physical units in beginning inventory.
D)dividing the physical number of units by the percentage of completion.

Question

Quizplus · Accepted Answer

Equivalent units are calculated by multiplying the physical number of units by the percentage of completion. This is done because not all units are completed at the same time, and we need to account for the partially completed units. By multiplying the physical number of units by the percentage of completion, we can express the total activity for a given period in terms of equivalent units of completed output.

Equivalent Units Are Calculated by