An equivalent unit means ‘equal to one finished unit of output’.

Related MCQs

• If beginning work in process equivalent units are 2500 units, work done in current period equivalent units are 3800 units and ending work in process equivalent units are 5000, then complete equivalent units in current period are
• If beginning work in process equivalent units are 2500 units, work done in current period equivalent units are 3800 units and ending work in process equivalent units are 5000, then complete equivalent units in current period are
• When there is closing work in progress, costs are shared between finished units and inventory by calculating a cost per equivalent unit.
• An equivalent unit of material or conversion cost is equal to
• If it is assumed that all losses in process occur at the end of the process, units of abnormal loss are costed in exactly the same way in the as units of finished output.
• Process costing is used when output is produced in a continuous process system, and it is difficult to separate individual units of output.
• The normal loss is something that is unavoidable in order to get the good output. The cost of the lost units is part of the cost of obtaining the good output.
• If cost incurred for work in process inventory is ₹350000 and total equivalent units completed till date are 3500, then weighted average cost will be
• Overheads can be absorbed into cost units by means of: • Physical unit produced • Percentage of prime cost • Percentage of direct wages • Direct labour hour rate • Machine hour rate
• Apportionment means sharing on a reasonable basis. Many overhead costs are costs that cannot be allocated directly to one cost centre, because they are shared by two or more cost centres. These costs are apportioned between the cost centres.