When equivalent units of production are different for materials and conversion costs unit costs are computed for materials conversion and total manufacturing.

Question

Quizplus · Accepted Answer

When equivalent units of production are different for materials and conversion costs, it means that the process of production requires different amounts of materials and labor. In this case, unit costs are computed for materials, conversion, and total manufacturing separately to accurately calculate the cost of production.

When Equivalent Units of Production Are Different for Materials and Conversion