Superior Sofa Company has completed its monthly inventory count for sectional sofas and recorded the following information for ending inventory: 600 units 100 percent complete, 250 units 80 percent complete, and 150 units 50 percent complete. The company uses a process costing system to determine unit cost. Why would unit cost be inaccurate if 1,000 units were used to determine unit cost?

Requirement:

1. Calculate the equivalent units of production for Superior Sofa Company.
2. Describe why using 1,000 units would result in an inaccurate unit cost.