The purpose of the equivalent-unit computation is to ________.
A) convert completed units into the amount of partially completed output units that could be made with that quantity of input
B) assist the business in determining the cost assigned to ending inventory and work-in-process inventory
C) predict the future production capabilities of the organization
D) satisfy the GAAP requirements which requires all partially completed goods to be reported as equivalent-units

Question

Quizplus · Accepted Answer

The equivalent-unit computation helps in determining the costs assigned to ending inventory and work-in-process inventory by converting the partially completed units into complete units. This assists in determining the accurate cost of inventory and also aids in decision making related to production and inventory planning.

The Purpose of the Equivalent-Unit Computation Is to ________