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Equivalent Units
A concept used in cost accounting to express the amount of work done by various units of production collectively, taking into account both complete and partially complete units.
Direct Labor
The wages and other costs for labor directly involved in the production of goods or provision of services.
Weighted Average Method
An inventory valuation method where costs of goods sold and ending inventory are determined by taking the weighted average of all units available for sale during the period.
Work in Process Inventory
Inventory that includes goods that are in the production process but are not yet complete.
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