The equal split method divides the cost between different products available at the time of cost splitting. The total cost will be divided among the number of different products available:
The total cost of 500 will be divided between two products equally--250 per product. Then it will be allocated per quantity. The inventory valuation will look like this:
The cost per one quantity will be computed in inventory to compute the cost price. It will look like this:
| Product | Rate | Qty | By Method | Cost/Qty |
| Material | 70 | 100 | 250 | 72.50 |
| Finished Product | 50 | 50 | 250 | 65 |
