Direct labor cost plus manufacturing overhead cost.
Conversion cost
The product of the # of partially completed units and their % of completion with respect to a particular cost. ___ are the # of complete whole units that could be obtained from the materials and effort contained in partially completed units
Equivalent units
The units transferred to the next department (or to finished goods) during the period plus the equivalent units in the department’s ending work in process inventory.
Equivalent units of production (weighted-average method)
A hybrid costing system used when products have some common characteristics and some individual characteristics.
Operation costing
A process costing method that calculates unit costs based solely on the costs and outputs from the current period.
FIFO method
A costing method used when homogeneous products are produced on a continuous basis.
Process costing
An organizational unit where work is performed on a product and where materials, labor, or overhead costs are added to the product.
Processing department
A process costing method that calculates unit costs by combining costs and outputs from the current and prior periods.
Weighted-average method
