Conversion costs are a. total equivalent units of conversion costs for the period divided by total conversion costs for the period. b. one part of a cost of production report that is prepared to show greater detail, including multiple cost categories. c. total direct materials cost for the period divided by total equivalent units of conversion costs for the period. d. total conversion costs for the period divided by total equivalent units of direct materials cost for the period.

Question

Rowland

Business

15 January, 06:40

Conversion costs are a. total equivalent units of conversion costs for the period divided by total conversion costs for the period. b. one part of a cost of production report that is prepared to show greater detail, including multiple cost categories. c. total direct materials cost for the period divided by total equivalent units of conversion costs for the period. d. total conversion costs for the period divided by total equivalent units of direct materials cost for the period.

+5

Answers (1)

Know the Answer?

Jordon Mitchell · Answer 1

B

Explanation:

Conversion costs are those costs incurred in converting raw materials to finished products and includes costs of direct labour (wages and salaries paid to workers who are directly involved in production process).

Since costs of production comprises of direct material costs, direct labour costs, direct expenses (costs of packaging for instance) and all indirect costs, it would be safe to say costs of conversion is only a part of costs of production