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Running head: EQUIVALENT UNITS IN A PRODUCTION BUSINESS SETTING Equivalent Units in a Production Business Setting Author’s Name Institutional Affiliation Date 1 EQUIVERLENT UNITS IN A PRODUCTION BUSINESS SETTING 2 To: Production Manager, Davis Skaros From: The Accountant Date: 23rd June 2018. Re: Equivalent units in a production setting In coming up with the production cost report, I used the equivalent units in the production setting of the whole organization including that of your department. Equivalent units of production refer to the amount of work that has been partially fulfilled in the organization by the works and it is applied in identifying the work-in-progress inventory of the organization at a certain accounting period or financial year (Maurer et al, 2016). International Accounting Standards have clearly explored how the costs of inventory of an organization should be determined. The standard has explained how the costs of the inventories and units of production should be determined and recognized. The production costs reports are prepared according to the stipulated rules and regulation in the General Accounting Principles and Standards (Maurer et al, 2016). E ...
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