Understanding Cost per Equivalent Unit in Accounting, Exercises of Ethics

A step-by-step explanation of how to calculate cost per equivalent unit in accounting. It is an essential concept for managing production costs and understanding financial statements.

Typology: Exercises

2017/2018

Uploaded on 02/27/2022

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“WHAT EVER YOU DO, ALWAYS CHOOSE WHAT MAKES YOU HAPPY
“THE PURPOSE OF LIVES IS TO BE HAPPY, SO ENJOY EVERYTHING”
Question
Answer
Step 1
Equivalent units is the number of units that are completely manufactured or
completed in the particular time period. Cost per equivalent unit is computed by
dividing total costs by total number of equivalent units.
Step 2
'Cost per
equivalent unit transferred out for February = P2.78 per unit

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“WHAT EVER YOU DO, ALWAYS CHOOSE WHAT MAKES YOU HAPPY”

“THE PURPOSE OF LIVES IS TO BE HAPPY, SO ENJOY EVERYTHING”

Question

Answer

Step 1

Equivalent units is the number of units that are completely manufactured or completed in the particular time period. Cost per equivalent unit is computed by dividing total costs by total number of equivalent units.

Step 2

'Cost per equivalent unit transferred out for February = P2.78 per unit