Equivalent-unit calculations are necessary to allocate manufacturing costs between:

cost of goods manufactured and cost of goods sold.
units sold and ending work in process.
units completed and ending work in process.
beginning work in process and units completed.
cost of goods manufactured and beginning work in process.

units completed and ending work in process.

Explanation:

In order to find out the equivalent units we consider the completed units and the ending work in process units.

In mathematically,

= Units transferred × completion percentage + ending work in process units × completion percentage

By considering the units transferred and the ending work in process units after taking the completion percentage we can easily calculate the equivalent units so that the allocation of the manufacturing cost could be done

answer; radioactive decay)

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.