ECONOMICS

Detailed explanation-1: -The cost per equivalent unit for the material is based on the equivalent units for material and the total material cost including the material cost of beginning work in process inventory. The total cost is divided from the equivalent units to compute the cost per unit equivalent unit.

Detailed explanation-2: -To calculate cost per equivalent unit by taking the total costs (both beginning work in process and costs added this period) and divide by the total equivalent units.

Detailed explanation-3: -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). When the items are completely finished, the number of equivalent units is equal to the physical items.

Detailed explanation-4: -Cost per Equivalent Unit Formula Production cost = Costs added during the period. Equivalent units = Beginning WIP units (% to complete) + Started and completed units (100%) + Ending WIP units (% to completed)