Question

Compute conversion costs given the following data: Direct Materials, $347,500; Direct Labor, $186,300; Factory Overhead, $187,900; and Selling Expenses, $45,290. $543,800 $187.900 $731,700 $384.200 D Question 2 2 pts Period costs include current assets on the balance sheet O current liabilities on the balance sheet operating costs that are shown on the income statement when products are sold operating costs that are shown on the income statement in the period in which they are incurred

Answer 1

$374200

Explanation:

Conversion cost is the amount of money used in converting raw materials into finished goods. This is the sum of direct labor and overhead cost. Conversion cost provide a means to measure the efficiency of a production method and to determine if they is waste of resources.

Given that: Direct Labor = $186,300; Factory Overhead = $187,900

Conversion cost = Direct labor + Factory overhead = $196300 + $187900 = $374200