ECONOMICS

Detailed explanation-1: -Units completed and transferred out are 100 percent complete. Thus equivalent units are the same as the physical units. Equivalent units = number of physical units × percentage of completion.

Detailed explanation-2: -For costs of units completed and transferred, we take the equivalent units for units completed x cost per equivalent unit. We do the same of ending work in process but using the equivalent units for ending work in process.

Detailed explanation-3: -Definition: Equivalent units of production are the sum of the units completed during a given accounting period together with the unfinished units that have been expressed as finished units.

Detailed explanation-4: -The journal entry to record the transfer of completed units to finished goods is (1) (debit/credit) Finished Goods and (2) (debit/credit) Work in Process. In process costing, manufacturing overhead costs are distributed to each department . Methods to calculate departmental unit costs include .