Asked by Hassaan Haider on May 02, 2024
Verified
Gilbert Corporation had 25,000 finished units and 8,000 units 35% complete. The equivalent units totaled 30,200.
Equivalent Units
A concept used in cost accounting to convert units of production into an amount of completed units, facilitating the calculation of costs per unit.
Finished Units
Completed products that are ready for sale or distribution at the end of a manufacturing process.
- Gain an understanding of the notion of equivalent units of production and the approach to computing them.
Verified Answer
RR
Roxana RomeroMay 09, 2024
Final Answer :
False
Explanation :
The equivalent units would be calculated as 25,000 finished units + (8,000 units * 35% completion) = 25,000 + 2,800 = 27,800 equivalent units, not 30,200.
Learning Objectives
- Gain an understanding of the notion of equivalent units of production and the approach to computing them.
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