Understanding Equivalent Units of Production Equivalent Units of Production $($EUP$)$ is a method used in process costing to assign costs to partially completed units of product, effectively converting them into the equivalent of fully completed units. This is crucial because it allows for the accurate costing of both fully completed and partially completed products at the end of a period. Example: Calculating EUP for Bread Co$.$ Imagine Bread Co$.$ has the following situation within a given time period: Started Production: $15,000$ loaves of bread Completed Production: $10,000$ loaves of bread Partially Completed: $5,000$ loaves of bread, considered to be $30\%$ completeOur goal is to calculate the Equivalent Units of Production $($EUP$)$ to understand how many complete loaves of bread this activity equates to$,$ for costing purposes. Step$-$by$-$Step Calculation Identify Completed Units: Start with the fully completed units, as these are already $100\%$ complete. In our case, this is $10,000$ loaves. Calculate Equivalent Units for Partially Completed Units: For the partially completed units, determine their equivalent in terms of fully completed units by multiplying the number of partially completed units by their percentage completion. For Bread Co$.,$ this is $5,000$ loaves$\backslash$times $30\%=1,500$ equivalent loaves $5,000$ loaves$\backslash$times $30\%=1,500$ equivalent loaves. Sum to Find Total EUP: Add the equivalent units for the partially completed products to the fully completed units to find the total Equivalent Units of Production. So$,10,000$ completed loaves$+1,500$ equivalent loaves from partials$=11,500$ EUP $10,000$ completed loaves$+1,500$ equivalent loaves from partials$=11,500$ EUP. Units to be Accounted For: Start with the total units Sydney Inc. had at the beginning and those started during the period. Beginning Units $($WIP$)$: $6,000$ units $($all completed during the period$)$ Started During Period: $8,000$ units Completion Status: Completed Units: $9,000(6,000$ from beginning WIP and $3,000$ of the $8,000$ started$)$ Ending WIP Units: $5,000($remaining from the $8,000$ started$)$ Calculating EUP for Direct Materials: Direct Materials are $40\%$ complete for ending WIP. Cost Information Provided: Beginning WIP costs and costs incurred during the period are specified for direct materials, direct labor, and overhead. Direct Materials Costs: Beginning WIP: $$300,000+$ Incurred: $$180,000=$ Total $$480,000$ Determining Equivalent Units: For Completed Units: $9,000$ units are considered $100\%$ complete. For Ending WIP: $5,000$ units at $40\%$ completion for direct materials $=2,000$ equivalent units. Total Equivalent Units for Direct Materials: $9,000($completed$)+2,000($from WIP$)=11,000$ units. Cost Per Equivalent Unit for Direct Materials: Total Cost: $$480,000/11,000$ units $=$ $$43\mathrm{.}64$ per unit. Allocating Costs: Completed Units Cost: $9,000$ units $\backslash$times $$43\mathrm{.}64=$ $$392,760.$ Ending WIP Cost: $2,000$ equivalent units $\backslash$times $$43\mathrm{.}64=$ $$87,280.$ This process applies the concepts of process costing by breaking down the costs into completed and work$-$in$-$process units, calculating the equivalent units for direct materials based on the percentage completion, and then distributing the costs accordingly. my question is in the image