Answer
Equivalent units represent the number of fully completed output units that could be made with the quantity of inputs used. These calculations are necessary in process costing because not all physical units are completed to the same extent at the same time, so equivalent units help in accurately measuring the progress of units through the production process.
Work Step by Step
Equivalent units represent the number of fully completed output units that could be made with the quantity of inputs used. These calculations are necessary in process costing because not all physical units are completed to the same extent at the same time, so equivalent units help in accurately measuring the progress of units through the production process.