The purpose of the equivalent-unit computation is to:

Question

Quizplus · Accepted Answer

The equivalent-unit computation is used to convert partially completed units into the amount of completed output units that could be made with that quantity of input. This is useful in determining the cost of inventory and in tracking the progress of production. Option B is not entirely correct, as the equivalent-unit computation does not directly determine ending inventory but rather the cost of the inventory. Option C is incorrect, as the computation is used to convert partially completed units into completed output units, not the other way around.

The Purpose of the Equivalent-Unit Computation Is To