Equivalent units are kept separate for what two categories?
A)Direct labor and manufacturing overhead.
B)Direct materials and conversion cost.
C)Direct materials and indirect materials.
D)Finished goods and cost of goods solD.Direct materials and conversion costs have different percentages of completion,so equivalent units are calculated separately for each of the two categories.

Question

Quizplus · Accepted Answer

Equivalent units are kept separate for direct materials and conversion costs because they have different percentages of completion. Direct labor and manufacturing overhead are typically combined into one category called "conversion costs." Direct materials and indirect materials are not separated for equivalent unit calculations. Finished goods and cost of goods sold are not categories for which equivalent units are calculated.

Equivalent Units Are Kept Separate for What Two Categories