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: -Equivalent units. are calculated by multiplying the number of physical (or actual) units on hand by the percentage of completion of the units. If the physical units are 100 percent complete, equivalent units will be the same as the physical units.

Detailed explanation-3: -The SI unit of work is joule (J).

Detailed explanation-4: -In process costing, the equivalent units are calculated for easy allocation of manufacturing costs to fully and partially completed units produced. This is used for calculating the number of units at the end of the period.

Detailed explanation-5: -Equivalent units = number of physical units × percentage of completion. 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.