An equivalent unit of production is an expression of the amount of work done by a manufacturer on units of output that are partially completed at the end of anaccounting period. ... Equivalent units are used in the production cost reports for the producing departments of manufacturers using a process costing system.
In cost accounting, equivalent units are the units in production multiplied by the percentage of those units that are complete (100 percent) or those that are in process. That covers everything. If a unit is completed and transferred out, it's 100 percent complete.
How to calculate them are:
The general formula for calculating cost per an equivalent unit = Total costs/ Number of units
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