ECONOMICS

Detailed explanation-1: -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-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: -Calculate equivalent units: Process costing uses the concept of equivalent units to account for items that are unfinished at the end of each period.

Detailed explanation-4: -the amount of material or conversion cost necessary to complete one unit of production.