Using the previous example of 1

Using the previous example of 1 - ,%completed , . materialsw

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Using the previous example of 1,000 units started during the period that were 40% completed,  assume that in a particular function, all of the materials are added at the beginning of the process  and the labor and overhead are added evenly throughout the process. The equivalent units for  materials would be the number of units times the percent complete. In this example, all the materials  are added at the beginning of the process so 100% of materials for this function are included in all  the units at the end of the period. The equivalent units for materials are 1,000 (1,000 units  ×  100%  complete for materials). The total materials costs are divided by 1,000 to calculate the materials cost  per unit. Unlike materials, more labor and overhead will be needed before these units are transferred to  another function or to finished goods. The equivalent units for conversion costs (labor and overhead) 
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