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Equivalent Units
A term used in process costing to measure the amount of work done on incomplete products, converted into an equivalent number of fully completed units.
Materials
Substances or components required in the production of goods or in the provision of services.
Weighted-Average Method
An inventory costing method that calculates the cost of goods based on the average cost of all similar items in inventory.
Processing Cost
The expenses related to the production or manufacturing of goods, including labor, materials, and overhead costs.
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