Determining Equivalent Units
Read section 4.3. As you can imagine, products manufactured in a process cost system will have varying degrees of completion with respect to its use of direct materials, direct labor, and overhead as the product flows through production. Accountants rely on the degree of completion to calculate equivalent units for the purpose of assigning those production costs at all stages.
Click https://saylordotorg.github.io/text_managerial-accounting/s08-03-determining-equivalent-units.html link to open resource.