Question

The following costs were incurred in September:

Direct materials

$40,100

Direct labor

$29,700

Manufacturing overhead

$21,200

Selling expenses

$25,600

Administrative expenses

$32,100

Conversion costs during the month totaled:

a.$148,700

b.$69,800

c.$50,900

d.$61,300

Answer 1

Answer:

Option (c) is correct.

Explanation:

Given that,

Direct materials  = $40,100

Direct labor  = $29,700

Manufacturing overhead  = $21,200

Selling expenses  = $25,600

Administrative expenses  = $32,100

Therefore, the Conversion costs during the month as follows:

=  Direct labor  +  Manufacturing overhead

= $29,700  + $21,200

= $50,900