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Jinger Alexandra
on Nov 12, 2024

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Equivalent units are the sum of direct materials used and direct labor incurred.

Equivalent Units

A measure used in cost accounting to express the amount of work done on partially finished goods in terms of fully completed units.

Direct Materials

Raw materials that are consumed in the manufacturing process, directly incorporated into the finished product.

Direct Labor

The cost of wages and benefits for the employees directly involved in the production of goods or services.

  • Understand the composition and calculation of equivalent units of production.
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Samyah HaynesNov 13, 2024
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