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Conversion hysteria
Direct Materials
Raw materials used directly in the production of a product, whose costs are easily traced to that product.
First-In, First-Out
An accounting method where the earliest acquired goods are sold or used first.
Conversion Cost Per Equivalent Unit
This is the cost incurred during the manufacture of a product that includes both direct labor and manufacturing overhead costs, divided by the number of equivalent units produced.
Work In Process-Assembly
Items in a manufacturing process that have been partially completed but are not yet finished goods.
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