Equivalent units are defined as the number of units completed and transferred out of work in process inventory during the current period.

Question

Quizplus · Accepted Answer

Equivalent units are defined as the number of fully completed units and the equivalent units of partially completed units in work in process inventory during the current period. So, the statement is false because it only takes into account units completed and transferred out, not partially completed units still in process.

Equivalent Units Are Defined as the Number of Units Completed