The number of equivalent units is usually the same for direct materials and conversion costs.

Question

Quizplus · Accepted Answer

The number of equivalent units for direct materials and conversion costs are typically not the same, as they measure different stages of production. Equivalent units for direct materials only consider the amount of materials used, while equivalent units for conversion costs take into account both materials used and the amount of labor and overhead needed to transform those materials. Therefore, they will often have different equivalent unit calculations.

The Number of Equivalent Units Is Usually the Same for Direct