Equivalent Units

14-31 Equivalent Units 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 (refer to Exhibit 14-6, page 590).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.Exhibit 14-6, page 590:PROCESS 1Quarry or MineLimestone Rock||PROCESS 2TransportRock to Plant|Direct Material__|||PROCESS 3Crush and ScreenLimestone Rock||Cost of_________ Goods SoldLimestone