ECONOMICS

Detailed explanation-1: -20, 000 units in a process that are 70% complete are referred to as: 14, 000 equivalent units of ending work in process. A process with no beginning work in process, completed and transferred out 85, 000 units during a period and had 50, 000 units in the ending work in process inventory that were 30% complete.

Detailed explanation-2: -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-3: -Equivalent units-a measure of the amount of work done during a period expressed in terms of fully complete units of. output. Number of. Number of partially.

Detailed explanation-4: -Equivalent Units―Weighted Average Method: In a weighted average method the equivalent units of production for a department are the number of units transferred to the next department of finished goods plus the equivalent units in the department’s ending work in process inventory.