Which statement best describes the concept of equivalent units of production?

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What is equivalent units of production?
Which of the following best describes the term equivalent units of production?
Which are true statements about equivalent units of production?
What is Statement of Equivalent units?

Multiple Choice Quiz
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1	When a process costing system is in use, which of the following matches the journal entry used to record the transfer of units from Department A, a processing department, to Department B, the next processing department?
	A)	Debit Work in Process – Department A and credit to Work in Process – Department B
	B)	Debit Work in Process – Department B and credit to Work in Process – Department A
	C)	Debit Work in Process – Department B and credit to Materials
	D)	Debit Finished Goods and credit to Work in Process – Department B



2	Which of the following statements is correct?
	A)	A manufacturer of paper would ordinarily use process costing rather than job-order costing.
	B)	If a company uses a process costing system it accumulates costs by processing department rather than by job.
	C)	The output of a processing department must be homogeneous in order to use process costing.
	D)	All of the above are correct statements.



3	Perkins Company uses the weighted-average method in its process costing system. The company sold 250,000 units during the current month. The following data were taken from the company's accounting records: (66.0K) What were the equivalent units of production for conversion costs in the Packing Department for the current month?
	A)	153,000
	B)	235,000
	C)	247,000
	D)	251,000



4	Feuerstein Company uses the weighted-average method in its process costing system. The following data for the Mixing Department were taken from the company's accounting records. (82.0K) The equivalent units of production for conversion costs were:
	A)	200,000 units.
	B)	204,000 units.
	C)	222,000 units.
	D)	224,000 units.



5	Bloodgood Company uses the weighted-average method in its process costing system. The following information was available about one of the company's processing departments: There were 15,000 units in the department's beginning work in process inventory, which were two-thirds complete with respect to conversion costs. During the current month, 105,000 units were started and 100,000 were completed and transferred out of the department. There were 108,000 equivalent units of production with respect to conversion costs during the current month. Which of the following statements correctly describes the ending work in process inventory in that processing department?
	A)	It is 40% complete with respect to conversion costs.
	B)	It is 65% complete with respect to conversion costs.
	C)	It consists of 5,000 units.
	D)	It consists of 10,000 units.



6	Wyle Company uses the weighted-average method in its process costing system. The following information was available for one of its processing departments: The beginning work in process inventory consisted of 16,000 units, which were 75% complete with respect to conversion costs. The department converted the equivalent of 59,000 units of production during the current month. A total of 50,000 units were completed and transferred out of that department during the current month. The ending work in process inventory consisted of 12,000 units, which were 50% complete with respect to conversion costs. What is the number of units that were started during the month in that processing department?
	A)	29,000 units
	B)	42,000 units
	C)	46,000 units
	D)	54,000 units



7	Shetty Company uses the weighted-average method in its process costing system. The following information pertains to one of its processing departments for the current month: (62.0K) All materials are added at the beginning of the process. The cost per equivalent unit for materials is closest to:
	A)	$0.25.
	B)	$0.34.
	C)	$0.44.
	D)	$1.48.



8	Adams Company uses the weighted-average method in its process costing system. The company has only a single processing department. The company's ending work in process inventory consisted of 36,000 units. The units in the ending work in process inventory were 50% complete with respect to materials and 30% complete with respect to labor and overhead. If the costs per equivalent unit for the current period were $5.50 for materials and $8.50 for labor and overhead, the total cost assigned to the ending work in process inventory was:
	A)	$151,200.
	B)	$160,200.
	C)	$252,000.
	D)	$190,800.



9	Cook Company uses the weighted-average method in its process costing system. The Baking Department is the third department in its production process. The data below summarize the department's operations during the current month: (74.0K) The Baking Department's production report indicates that the cost per equivalent unit for conversion cost for the current month was $8.24. How much conversion cost was assigned to the units transferred out of the Baking Department during the current month?
	A)	$964,574.40
	B)	$1,005,280
	C)	$1,046,480
	D)	$1,122,288



10	The beginning work in process inventory in the Milling Department consisted of 10,000 units, 50% complete with respect to materials cost and 60% complete with respect to conversion costs. The total cost of the beginning inventory was $60,000. During the month, 50,000 units were transferred out of this department. The equivalent unit cost was computed to be $4.00 for materials and $7.40 for conversion costs under the weighted-average method. Given this information, the total cost of the units completed and transferred out of this department during the month was:
	A)	$480,000.
	B)	$510,000.
	C)	$540,000.
	D)	$570,000.

What is equivalent units of production?

Equivalent units describe how much work has been done on a certain number of physical items. To simply calculate equivalent units, you can multiply the number of physical items by the percentage of the work done on them. For two items that are 50% done, you would have one equivalent unit (2 x 50% = 1).

Which of the following best describes the term equivalent units of production?

The answer is a. An equivalent unit of production is a term that refers to units that have not been completed yet expressed in terms of units that have been completed.

Which are true statements about equivalent units of production?

Which are true statements about equivalent units of production? It is calculated by adding units completed and transferred to the finishing department and product of the units in process and the percent complete.

What is Statement of Equivalent units?

Equivalent units are notional whole units that are equivalent to the number of incomplete units adjusted for their stage of completion. For example, if there are 200 incomplete units in a process at the end of a period and they are 75% complete then this is equivalent to 150 (200 × 0.75) whole (complete) units.