Cost per equivalent unit amounts are usually calculated for
A)direct materials, direct labor, and administrative costs.
B)current period costs incurred only.
C)direct material, direct labor, manufacturing overhead, and transferred-in costs.
D)units transferred in by the suppliers and units transferred out as sales returns.

Question

Quizplus · Accepted Answer

Cost per equivalent unit (CPU) is a measure used to allocate the costs of production between units completed and those in progress. It takes into account direct material, direct labor, manufacturing overhead, and transferred-in costs, which are all necessary to determine the total cost of production per equivalent unit. Therefore, Choice C is the best answer.

Cost Per Equivalent Unit Amounts Are Usually Calculated for