Equivalent units of production are
A)complete units that could have been produced given the total amount of manufacturing effort expended for the period under consideration.
B)the average number of units produced in a given period.
C)continuously measured in a total quality environment.
D)computed in both job-order and process cost systems.

Question

Quizplus · Accepted Answer

Equivalent units of production (EUP) are the number of complete units that could have been produced given the total amount of manufacturing effort expended for the period under consideration. This concept is used in process costing to account for the fact that not all units produced are identical in terms of materials and processing. Therefore, EUPs consider the amount of work required to produce units at each stage of production and express it in terms of a common denominator, allowing for more accurate cost calculations.

Equivalent Units of Production Are