Chapter 16, Problem 6DQ

To determine

Equivalent Units of Production (EUP):

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.

Process Costing:

Process costing is a method where cost is allocated to each process and then it is further assigned to individual units. It is appropriate for companies where similar products are produced in large volume.

To identify: Equivalent units of production and reasons to use EUP in process costing.