Deluxe Furniture Manufacturing has completed its monthly inventory count for dining tables and recorded the following information for ending inventory: 650 units 100 percent complete, 300 units 50 percent complete, and 150 units 30 percent complete. The company uses a process costing system to determine unit cost. Why would unit cost be inaccurate if 1,100 units were used to determine unit cost?

Requirement:

1. Calculate the equivalent units of production for Deluxe Furniture Manufacturing.
2. Discuss the implications of using 1,100 units to calculate the unit cost.