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Katie Schmitz
on Oct 15, 2024

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Conversion cost per equivalent unit is the combined cost of direct labor and factory overhead per equivalent unit.

Direct Labor

The labor costs directly traceable to the production of goods, including wages of workers on the production line.

Factory Overhead

All manufacturing costs that are not directly related to the production of goods, including costs associated with operating the factory.

  • Comprehend the principle of conversion costs and the methodology used for their computation.
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LS
Lindsey SchlaredOct 20, 2024
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