Question

It is necessary to calculate equivalent units of production in a department because Select one: a. at times a department may use a job order cost system and then switch to a process cost system. b. the physical units in the department are always 100% complete. c. a physical count of units is impossible. d. some units worked on in the department are not fully complete.

Answer 1

Answer: The correct answer is "D. some units worked on in the department are not fully complete.".

Explanation: The equivalent units of production correspond to the number of finished units of an article that a company could have produced in theory, given the percentage amount incurred of direct materials, direct labor and manufacturing overhead during that period for items not yet finished.