The number of equivalent units of production assigned to ending goods in process inventory should be equal to or less than the number of physical units in ending goods in process inventory.

Question

Quizplus · Accepted Answer

This statement is true. The number of equivalent units of production takes into account the percentage of completion for each unit in ending goods in process inventory. Therefore, it is possible for the number of equivalent units to be less than the number of physical units if some units are not yet fully completed.

The Number of Equivalent Units of Production Assigned to Ending