The computation of equivalent units is generally not necessary when:
A)Beginning work-in-process inventories are significantly larger than ending work-in-process inventories.
B)Beginning and ending work in process inventories differ only slightly.
C)The number of units in ending work-in-process exceeds the number of units completed and transferred to finished goods during the period.
D)Per-unit costs become distorted as a result of not computing equivalent units of production.

Question

Quizplus · Accepted Answer

Equivalent units are used to account for partially completed units in both beginning and ending work-in-process inventories. If the beginning and ending inventories are similar, then the impact of equivalent units on the total production cost will be minimal, making their computation unnecessary.

The Computation of Equivalent Units Is Generally Not Necessary When