Confirm your understanding of the equivalent units concept by computing the equivalent units for material, direct labor, and overhead for the following hypothetical case at Nally & Gibson.
In Process 3—crush and screen limestone rock—400 tons of limestone rock were transported to the plant during March. There was no beginning inventory of rock. During March, 320 tons were crushed, screened, and stocked. At the end of March, 80 tons of rock were 40% crushed and screened.
Direct labor and overhead are incurred evenly during the crushing and screening process.

  • CreatedNovember 19, 2014
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