Asked by Deepak Karira on Jul 27, 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. What is the total conversion cost?
A) $129,500
B) $154,600
C) $284,100
D) $238,600
Total Conversion Cost
The sum of all labor costs and overhead expenses involved in converting raw materials into finished goods.
- Determine and assess the costs of conversion in a production context.
Verified Answer
EK
Emily KonoldJul 31, 2024
Final Answer :
A
Explanation :
Conversion costs are the sum of direct labor and factory overhead costs, which in this case is $84,000 + $45,500 = $129,500.
Learning Objectives
- Determine and assess the costs of conversion in a production context.
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