units represent the number of partially completed units as a portion of fully completed units when accounting for the flow of costs and movement of materials/inventory through production.

Equivalent Units represent the number of partially completed units as a portion of fully completed units when accounting for the flow of costs and movement of materials/inventory through production. This term is used in process costing. This helps in determining the partially completed unit as percentage of completed units. for eg. if 300 units are completed out 1000 units then as equivalent unit we can say 30% are fully completed. flow of cost are allocated as per 30% fully completed output.

Hope you understood the concept. if any query feel free to ask in comment section.

Thank you! Have a nice day.