Question

what is the equivalent units of production employed to compute the unit conversion costs on the...

what is the equivalent units of production employed to compute the unit conversion costs on the cost of production report for the butchering department

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Answer #2

The equivalent units of production figure for a department indicates the number of units that could have been completed from materials, labor, and overhead used in that time period. It is calculated by expressing units in the process at the close of the period in terms of completed units . This figure that is expressed in terms of completed units is added to the figure of the number of units that have actually been completed. This entire explanation is based on the assumption that there are opening work-in-process inventories.

A department’s (eg : Butchering department) equivalent production is Bifurcated into costs in order to calculate the departmental unit cost . Therefore production figures have a direct effect on the calculated unit costs.

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