20-- The Concept of Equivalent Units of Production

[@LarryWalther]

Cost of goods sold can be found algebraically with the following basic formula: beginning finished goods inventory + goods transferred in (purchases in retail environments) = cost of goods sold + ending finished goods inventory. The cost per equivalent unit calculation can be used to determine the cost of goods transferred in (ie the cost of goods transferred out of the previous department).

[@zenadelling6442]

Thank you so much Professor Walther, I was confused, but not anymore.

[@89Valkyrie]

there's only sound on one side, makes it very hard to concentrate

[@infadel13]

AHA!!! this was what had me stuck, THANKS!!!!

[@snelso80]

Do you use the cost per equivalent units to determine what COGS should be for the amount of inventory that was sold in that period? The reason that I am asking is because my professor said that you perform this calculation to determine the equivalent cost for WIP inventory, and COGS. However, it seems like this calculation would only be useful for WIP and Finished Goods Available for Sale. hope you can shed some light on this

[@yashsavaliya8132]

From the following information prepare statement of equivalent unit
Particulars. Unit
Opening stock of inventory. 500
(60% complete)
Unit introduce during year. 10000
Closing stock of inventory. 200
(40% complete)

[@cmaman1]

thank you

[@2OthCenturyFox]

Thankyou :)