Equivalent units are tracked separately for which two categories of costs?
A) Direct labor and manufacturing overhead.
B) Direct materials and conversion cost.
C) Direct materials and indirect materials.
D) Finished goods and cost of goods solD.
Direct materials and conversion costs have different percentages of completion so equivalent units are calculated separately for each category.

Question

Quizplus · Accepted Answer

Equivalent units are tracked separately for direct materials and conversion costs since they have different percentages of completion.

Equivalent Units Are Tracked Separately for Which Two Categories of Costs