An equivalent unit is calculated by:
A)dividing the number of physical units by the percentage of completion.
B)multiplying the number of physical units by the percentage of completion.
C)dividing the number of physical units into direct materials and conversion costs.
D)subtracting the number of physical units in ending Work in Process Inventory from the total number of physical units.

Question

Quizplus · Accepted Answer

An equivalent unit is a unit of production that accounts for the total amount of work needed to convert partially completed units into fully completed units. It is calculated by multiplying the number of physical units by the percentage of completion.

An Equivalent Unit Is Calculated By