Asked by mohammad uzair on Jul 02, 2024
Verified
In the manufacture of 8,000 units of a product, direct materials cost incurred was $154,600, direct labor cost incurred was $84,000, and applied factory overhead was $45,500. The total conversion cost is
A) $129,500
B) $154,600
C) $284,100
D) $238,600
Conversion Cost
The total expense incurred by a company to convert raw materials into finished products, comprising labor costs and manufacturing overhead.
- Calculate total conversion costs.
Verified Answer
AJ
amira jefferson6 days ago
Final Answer :
A
Explanation :
Conversion costs are the sum of direct labor and applied factory overhead. Here, direct labor is $84,000 and applied factory overhead is $45,500, totaling $129,500.
Learning Objectives
- Calculate total conversion costs.
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