2,000 Equivalent Units in Ending Inventory : Accounting paper

Topic 

2,000 Equivalent Units in Ending Inventory : Accounting paper

Instructions 

Write an accounting paper on 2,000 Equivalent Units in Ending Inventory

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The equivalent units in inventory takes into account the level of completion of the existing stock at different stages of the production process. Equivalent units are computed by identifying the units in production and the percentage of such units that are complete and those that are not complete thus coming up with a percentage of completion. For instance, if you have you have 5,000 units in production, and they are 40 percent complete, the equivalent units of production would be 2,000 units (40% of 5,000 units).

Word Count: 500