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Equivalents units in
In Process costing, the Equivalent units concept is important to compute the actual cost associated with the units completed during the period and units remained in process at the end. The main difference between unit completed and units in process at end is that the units completed has been processed at 100% degree with respect to each element of cost and the units in process is treated as units which may not have completed at 100% degree for some or all elements of cost till the end of period. Therefore, the equivalent units concept is important where the units in process shall be taken in line of completed units by reducing its units on the basis of degree of completion of in process units for each element of cost.
TheTotal equivalent units of production with respect to conversion shall be computed as per weighted average method.

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Chapter 20 Solutions
FUNDAMENTAL ACCOUNTING PRINCIPLES
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- Hello tutorarrow_forwardA local bakery sells 12,000 loaves of sourdough bread each year. The loaves are ordered from an outside supplier, and it takes 4 days for each shipment of loaves to arrive. Ordering costs are estimated at $18 per order. Carrying costs are $6 per loaf per year. Assume that the bakery is open 300 days a year. What is the maximum inventory of loaves held in a given ordering cycle?arrow_forwardGiven solution for General accounting question not use aiarrow_forward
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