If a production department has 100 equivalent units of production with respect to direct materials in a given reporting period,the equivalent units of production with respect to direct labor must also be 100.

Equivalent Units

A concept used in cost accounting to convert the amount of work done on partially complete goods into a number of fully complete units.

Direct Materials

The raw materials that are directly traceable to the production of goods or services.

Direct Labor

Direct labor involves the wages of employees who are directly involved in the manufacturing or production process of a company's products or services.