When calculating equivalent units in a second or later processing department, all physical units should be considered 100% complete with respect to transferred-in work and costs.

Question

Quizplus · Accepted Answer

When calculating equivalent units in a second or later processing department, all physical units should be considered 100% complete with respect to transferred-in work and costs. This is because the units have already undergone the initial processing in the previous departments and have been transferred to the next department as complete units. Therefore, in the next department, equivalent units are calculated based only on the work done in that department.

When Calculating Equivalent Units in a Second or Later Processing