To compute equivalent units of production, one must be able to reasonably estimate:
A) Units completed.
B) Direct labor cost.
C) Units started and completed.
D) Materials cost.
E) The percentage of completion.

Question

Quizplus · Accepted Answer

Equivalent units of production are calculated by estimating the percentage of completion for units that are in process. This requires the ability to estimate the degree of completion for both materials and labor. Therefore, option E - the percentage of completion - is the best choice for computing equivalent units of production.

To Compute Equivalent Units of Production, One Must Be Able