McKnight Handcraft produces picture frames for large retailers. The process$-$costing

system at McKnight has a single direct$-$cost category $($direct materials$)$ and a single

indirect cost category $($conversion costs$).$ Direct material is added at the beginning of

the production process, and conversion activity occurs uniformly throughout the

process. McKnight uses the weighted$-$average method of process costing.

A burst pipe in April caused the loss of some information, but they have been able to

retrieve others. The retrieved information is listed below. On $1$ April, the work$-$in$-$

process was $20$ percent complete as to conversion, while on $30$ April, the work$-$in$-$

process was $60$ percent complete as to conversion.

Work in process, $1$ April $($in units$)$

Units started during April

Total units to account for

Units completed and transferred out during April

Work in process, $30$ April $($in units$)$

Total equivalent units: direct material

Total equivalent units: conversion

Work in process, $1$ April: direct material

Work in process, $1$ April: conversion

Cost incurred during April: direct material

Cost incurred during April: conversion

Work in process, $1$ April: total cost

Total costs incurred during April

Total costs to account for

Cost per equivalent unit: direct material

Cost per equivalent unit: conversion

Total cost per equivalent unit.

Cost of goods completed and transferred out during April

Cost remaining in ending work$-$in$-$process inventory: direct material

Cost remaining in ending work$-$in$-$process inventory: conversion $.$

Total cost of $30$ April work$-$in$-$process $.$

Question: B$.$ Define the term equivalent unit and explain how the concept is used in process costing?