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Processing Department
A specific section within a manufacturing facility where a particular stage of production is completed.
Cost Per Equivalent Unit
Cost per equivalent unit is a calculation used in process costing that divides the total cost of production by the number of units produced, adjusted for partial completion.
Conversion Costs
Expenses related to converting raw materials into finished goods, including direct labor costs and manufacturing overhead.
Equivalent Units
A concept used in cost accounting to convert partially completed goods into an equivalent number of fully completed units for inventory valuation.
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