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

Question

Quizplus · Accepted Answer

To compute an equivalent unit of production, one must be able to reasonably estimate the percentage of completion, as it is the measure of how much work has been performed on a product. This estimate is necessary to proportionately allocate the costs of materials, labor, and overhead to each unit of production.

To Compute an Equivalent Unit of Production,one Must Be Able