Compute conversion costs given the following dа ta: direct materials, $381,400; direct labor, $196,500; factory overhead, $194,000 and selling expenses, $41,200. a.$575,400 b.$771,900 c.$390,500 d.$152,800

Question

Robert Mills

Business

27 December, 13:42

Compute conversion costs given the following dа ta: direct materials, $381,400; direct labor, $196,500; factory overhead, $194,000 and selling expenses, $41,200. a.$575,400 b.$771,900 c.$390,500 d.$152,800

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Answers (1)

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Donna Christian · Answer 1

Conversion costs: c.$390,500

Explanation:

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

Conversion Costs = Direct Labor cost + Manufacturing Overheads cost = Total Manufacturing Costs - Direct Material cost

With direct labor cost of $196,500; factory overhead cost of $194,000.

Conversion Costs = $196,500 + $194,000 = $390,500