Elegant Table Manufacturing has completed its monthly inventory count for dining tables and recorded the following information for ending inventory: 700 units 100 percent complete, 300 units 40 percent complete, and 150 units 10 percent complete. The company uses a process costing system to determine unit cost. Why would unit cost be inaccurate if 1,150 units were used to determine unit cost?

Requirement:

1. Determine the equivalent units of production for Elegant Table Manufacturing.
2. Explain the potential inaccuracies in unit cost calculation if 1,150 units are used.