to the production of its sequin dresses. Two direct materials are needed for these
dresses: cloth and sequins. Cloth is added at the beginning of the production
process. The cloth is cut out and sewn into dresses. The sequins are then sewn on
the dresses. Which of the following statements is correct with respect to the
calculation of equivalent units of production for cloth and sequins?
a. cloth and sequins should be grouped together as one material
b. cloth and sequins should be handled as two separate materials and two separate
equivalent unit calculations
c. cloth should be considered the only material and sequins should be considered
part of conversion cost
d. both cloth and sequins should be considered part of conversion cost
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