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    Explain the notion of equivalent units of production (EUP).

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    Explain in simple terms the notion of equivalent units of production(EUP). Why is it necessary to use EUP in process costing?

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    Equivalent units are the amount of resources required to complete a full unit. It is used when batches or a process is stopped prior to completion and it is necessary to figure out the cost per unit. You compute EUP by multiplying the number of partial ...

    Solution Summary

    This is a typically difficult concept and this discussion boils it down and gives you an example to try to create a picture in your mind.