Question

If working process our goods that are not completed, why are their "units transfered out"?

In my textbook, equivalent units of production is defined as, "work done during the period, expressed in FULLY COMPLETED UNITS."

So is WIP are not completed, how in the world can they be included.

I'm sooooo confused. And the book examples do not help!

1 year ago - 1 answers

Best Answer

Chosen by Asker

Work in Process is only included to the extent of "equivalent units" completed. If 100 units are 50% complete, that is the same as 50 units 100% complete.

1 year ago