Question

Explain and provide a real life business example for equivalent units. Explain the importance and main...

Explain and provide a real life business example for equivalent units. Explain the importance
and main purpose for equivalent units?
0 0
Add a comment Improve this question Transcribed image text
Answer #1

An equivalent production unit is a performance of the work done by a manufacturer on units of output output that are partially completed at the end of a numerical period. Basically complete units and partially completed units are expressed on the basis of fully completed units.

example

assume that a manufacture uses direct material continuously in one of the production department during january the department begasn with no units in the inventory and the started completed 100000 units and additinaly produced 10000 un its but they where only 50% completed at the end of january . The production cost report for the department will indicate the manufactured unit will be 105000 (100000+( 10000*50%))

if the total direct meterial cost for january is 2000000 it weill be divided to 105000 units ie 19.047

Add a comment
Know the answer?
Add Answer to:
Explain and provide a real life business example for equivalent units. Explain the importance and main...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT