Equivalent units of production significantly differ from units completed and transferred during the period only when no significant differences exist between beginning and ending work in process.

Question

Quizplus · Accepted Answer

Equivalent units of production take into account the work done on incomplete units (both at the beginning and end of the period), thus they can significantly differ from units completed and transferred out, especially when there are significant differences in the work in process at the beginning and end of the period.

Equivalent Units of Production Significantly Differ from Units Completed and Transferred