Question

To compute an equivalent unit of production, one must be able to reasonably estimate:A. The percentage of completion.B. Units completed.C. Units started and completed.D. Direct labor cost.E. Materials cost.

Answer 1

Answer:

A. The percentage of completion.

Explanation:

The equivalent unit of production is an expression that matches the partially completed units with the fully completed ones according to the percentage completed at the end of an accounting period.

In other words is the theoretical production given the amount of direct materials, direct labor, and manufacturing overhead costs incurred during that period for the unfinished items.