Chapter 4 Process Costing - Equivalent Units Objective 1 What is Process Costing? Objective 2 Calculate Equivalent Units and Related Costs Q1 An intuitive example You are making cupcakes to sell on campus for a charity event. You planned to spend three nights to make 200 cupcakes and sell them during the day. Here is the information you gathered on Day 1. Question: You started to take the 40 finished cupcakes to sell on Day 2 - what is the cost of each cupcak How do you determine the price? (Hint: How many units did you really finish? Is it 40 cupcakes, or?)