The number of equivalent units is computed before computing the cost per equivalent unit.

Name: The number of equivalent units is computed before computing the cost per equivalent unit.
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Question

Quizplus · Accepted Answer

This is true. Equivalent units must be determined before computing the cost per unit because it is necessary to determine how much work has been done on partially completed units in order to accurately allocate the costs related to that work.

The Number of Equivalent Units Is Computed Before Computing the Cost