Equivalent units of production in a department for a period will be equal to the number of equivalent units in ending work in process inventory.

Question

Quizplus · Accepted Answer

Equivalent units of production are the number of units that could have been completed during a period, based on the amount of input (direct materials, direct labor, and manufacturing overhead) used to produce them. The ending work in process inventory may have partially completed units and therefore would not necessarily represent the total equivalent units of production for the period.

Equivalent Units of Production in a Department for a Period