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What are equivalent units? Why are they needed in a process-costing system?
Cornerstones of Cost Management (C...
Solutions
Cornerstones of Cost Management (C...
What are equivalent units? Why are they needed in a process-costing system?
State the term of equivalent units and state the reason for which they are needed in a process costing system.
Explanation of Solution
Equivalents units for production: The activity of a processing department in terms of fully completed units is known as equivalent units. It includes the completed units of direct materials and conversion cost of beginning work in process, units completed and transferred out, and ending work in process...
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