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

Question

Quizplus · Accepted Answer

This statement is true because equivalent units of production represent the number of units that are partially completed in ending Work in Process inventory, taking into account the level of completion of each unit. Therefore, it is not possible for the equivalent units to be greater than the physical units in the inventory.

The Number of Equivalent Units of Production Assigned to Ending