Equivalent units

Equivalent units is derived amount of output units that (a) takes the quantity of each input (factor of production) in units completed and in incomplete units of work in process and (b) converts the quantity of input into the amount of completed output units that could be produced with that quantity of input.

Definitions

According to Cost Accounting by Horngren, Datar, Rajan (14th edition),

Equivalent units. Derived amount of output units that (a) takes the quantity of each input (factor of production) in units completed and in incomplete units of work in process and (b) converts the quantity of input into the amount of completed output units that could be produced with that quantity of input.

According to Managerial Accounting by Braun, Tietz (5th edition),

Equivalent units. Express the amount of work done during a period in terms of fully completed units of output.