Carmelita Inc. has the following information available:
-Equivalent production units are generally determined for
A)direct materials and conversion costs
B)direct materials only
C)conversion costs only
D)direct materials and direct labor costs

Question

Carmelita Inc. has the following information available:  ​
-Equivalent production units are generally determined for
A)direct materials and conversion costs 
B)direct materials only 
C)conversion costs only 
D)direct materials and direct labor costs

Quizplus · Accepted Answer

Equivalent production units are calculated for both direct materials and conversion costs to accurately measure the amount of work done on materials and the conversion process (which includes direct labor and manufacturing overhead) during a period.