The following information is available from the records of Kamond Cut, Inc.:Direct Materials-Assembly Department $10,000Direct Materials-Finishing Department 15,000Direct Labor-Assembly Department 11,000Direct Labor-Finishing Department 20,000Applied Overhead-Assembly Department 11,000Applied Overhead-Finishing Department 20,000Actual Overhead-Assembly Department 12,500Actual Overhead-Finishing Department 17,500a) What are the "total costs to account for" in the Assembly Department? b) What are the conversion costs in the Finishing Department?

Question

Giovanna Middleton

Business

23 March, 18:47

The following information is available from the records of Kamond Cut, Inc.:Direct Materials-Assembly Department $10,000Direct Materials-Finishing Department 15,000Direct Labor-Assembly Department 11,000Direct Labor-Finishing Department 20,000Applied Overhead-Assembly Department 11,000Applied Overhead-Finishing Department 20,000Actual Overhead-Assembly Department 12,500Actual Overhead-Finishing Department 17,500a) What are the "total costs to account for" in the Assembly Department? b) What are the conversion costs in the Finishing Department?

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June · Answer 1

a. Total cost in Assembly Department: $

Direct material 10,000

Direct labour 11,000

Applied overhead 11,000

Total cost 32,000

b. Conversion cost in Finishing Department

Direct labour 20,000

Applied overhead 17,500

Total conversion cost 37,500

Explanation: Total cost is the aggregate of direct material cost, direct labour cost and overhead.

Conversion cost is the aggregate of labour and overhead.