Equivalent Units of Production: As per equivalent units of production, the units which are yet to complete are treated at par with fully completed units in order to allocate production cost uniformly. Both fully completed units and partially completed units are represented by fully completed units. To identify: Equivalent units of production for both direct labor and overheads can be same but different from equivalent units of production for direct materials. Explanation: Equivalent units of production of direct labor and overheads can be same in situations where both direct labor and overheads are entered in the job at the same time. Equivalent units of production of direct materials are usually different from equivalent units of production of direct labor and overheads because all these three elements of production may enter the job at different phases. Direct materials enter in the beginning of the process whereas direct labor and overheads are added round the production process. Hence, equivalent units of production for both direct labor and overheads can be same but different from equivalent units of production for direct materials.

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Chapter 16, Problem 12DQ

To determine

Equivalent Units of Production:

As per equivalent units of production, the units which are yet to complete are treated at par with fully completed units in order to allocate production cost uniformly. Both fully completed units and partially completed units are represented by fully completed units.

To identify: Equivalent units of production for both direct labor and overheads can be same but different from equivalent units of production for direct materials.

Explanation:

Equivalent units of production of direct labor and overheads can be same in situations where both direct labor and overheads are entered in the job at the same time.

Equivalent units of production of direct materials are usually different from equivalent units of production of direct labor and overheads because all these three elements of production may enter the job at different phases.

Direct materials enter in the beginning of the process whereas direct labor and overheads are added round the production process.

Hence, equivalent units of production for both direct labor and overheads can be same but different from equivalent units of production for direct materials.

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