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Unformatted text preview: equivalent to 40 units of equivalent production. Equivalent units are the number of complete whole units one could obtain from the materials and effort contained in partially completed units. There in the present scenario, the partially completed units may be more than 1000, but if we convert it into one whole unit it becomes 1000. Equivalent units= Number of partially completed units * Stage of production For example: 2000 units are 50% complete than, equivalent units= 2000*50%=1000 I hope that you find the above explanation satisfactory in regard to your production cost report only showing only 1,000 equivalent units in ending inventory. Thank you. Memo...
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- Spring '08