For which of the following do we prepare calculations for equivalent units?
A)Both direct labor and Manufacturing Overhead
B)Both direct materials and conversion costs
C)Both direct labor and direct materials
D)Neither direct materials nor conversion costs

Question

Quizplus · Accepted Answer

Calculations for equivalent units are prepared for both direct materials and conversion costs. Direct materials and conversion costs are the two components of the total manufacturing costs. Equivalent units are calculated in order to allocate these costs between completed units and units in process at the end of the period.

For Which of the Following Do We Prepare Calculations for Equivalent