The number of equivalent units for materials is the same as the equivalent units for conversion costs in each department, but will often differ from equivalent units of other departments.

Question

Quizplus · Accepted Answer

The number of equivalent units for materials and conversion costs may not be the same in each department because different processes may have different amounts of material input or require different levels of direct labor and overhead. Therefore, the equivalent units for one department may not be equivalent to those of another department.

The Number of Equivalent Units for Materials Is the Same