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What is the purpose of the equivalent-unit computation in process costing problems?
To separate material costs from conversion costs in assigning costs to work in process, finished goods and cost of goods sold.
To predict the average cost per unit of items made in large batches which are identical to each other.
To spread the cost incurred during the period to the work effort in fully completed units.
To comply with generally accepted accounting principles rule to report work in process as equivalent units.