Question

The following costs were incurred in August:

Direct materials $37,000
Direct labor $14,000
Manufacturing overhead $38,000
Selling expenses $10,000
Administrative expenses $28,000
Conversion costs during the month totaled:_______

a. $127,000
b. $52,000
c. $51,000
d. $75,000

Answer 1

Heya mate!!

Option A is the answer.

$127,000

Hope it helps u dear✌️✌️

Answer 2

b. $52,000

Step-by-step explanation:

The formula to compute the conversion cost is shown below:

= Direct labor cost + Manufacturing overhead cost

= $14,000 + $38,000

= $52,000

We simply added the direct labor and the manufacturing overhead so that the conversion cost should be calculated. It is a combination of the direct labor cost and the manufacturing overhead cost

All other information which is given is not relevant. Hence, ignored it