Equivalent units of production are a measure representing the percentage of a unit's cost that has been completed.
Explanation:
Equivalent units of output is the expression of a processing department’s activity in terms of fully completed units.
For example:- 2 units that are 50 percent complete are the equivalent of one unit fully completed.
Work done on partially completed units in beginning work-in-process inventory Defines the prior period work.
Manufacturing costs assigned to these units represent prior period costs.
An equivalent unit of production refers to the amount of work done by a manufacturer on units of output that are partially completed at the end of an accounting period.
Equivalent units are used in the production cost reports .
