Define the term "equivalent unit" as it relates to process costing along with a simple numerical example of its calculation
An equivalent unit is a partially completed unit that is expressed in terms of a whole, completed unit. Units that are partially complete can be expressed in terms of equivalent units by multiplying the number of units partially complete by the percentage they are complete.
For example, if there are 100 units in ending work-in-process inventory that are 20% complete, then there are 20 equivalent units in ending work-in-process inventory.
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Indicate whether the statement is true or false
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