[amp_mcq option1=”summarize total costs” option2=”compute cost for each equivalent unit” option3=”summarize flow of output” option4=”compute output in units” correct=”option2″]<\/p>\n
The correct answer is: B. compute cost for each equivalent unit<\/strong>.<\/p>\n In process costing, equivalent units are used to measure the work done during a period. They are calculated by multiplying the actual units produced by the percentage of work completed on those units. For example, if 100 units were started in production and 80 units were completed, the equivalent units would be 80 units.<\/p>\n The cost per equivalent unit is calculated by dividing the total costs incurred during the period by the equivalent units produced. This figure is then used to value the units in ending inventory and to cost the units transferred out of the process.<\/p>\n The other options are incorrect because:<\/p>\n [amp_mcq option1=”summarize total costs” option2=”compute cost for each equivalent unit” option3=”summarize flow of output” option4=”compute output in units” correct=”option2″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-49465","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"\n\n