Question

The following costs were incurred in September: Direct materials $43,500 Direct labor $29,100 Manufacturing overhead $26,100 Selling expenses $18,800 Administrative expenses $37,700 Conversion costs during the month totaled:

Answer 1

Answer:

Conversion costs during the month totaled: $55,200

Explanation:

Conversion costs are those production costs required to convert raw material to finished goods. Conversion costs include direct labor and manufacturing overheads.

Conversion Costs = Direct Labor + Manufacturing Overheads = Total Manufacturing Costs – Direct Material.

During September, Direct labor were incurred of $29,100, Manufacturing overhead were incurred of $26,100.

Conversion Costs = $29,100 + $26,100 = $55,200