ECONOMICS

Detailed explanation-1: -Explanation: Equivalent units are not separately computed for conversion costs and material under the process costing system; rather, material costs are traced to units of products during the process costing system. This process is used to determine the costs of the products produced by the company.

Detailed explanation-2: -Answer and Explanation: The cost per equivalent unit is often determined separately for direct materials and conversion costs because these costs are typically incurred at different stages of the production process.

Detailed explanation-3: -Cost per equivalent unit is calculated separately for direct materials and for conversion costs. The total cost of Work in Process incurred in one department during the period must be allocated between costs transferred to the next department and costs transferred to Finished Goods.

Detailed explanation-4: -Which are true statements about equivalent units of production? It is calculated by adding units completed and transferred to the finishing department and product of the units in process and the percent complete.

Detailed explanation-5: -Equivalent units describe how much work has been done on a certain number of physical items. 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).