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23 January, 21:58

Compute conversion costs given the following dа ta: Direct Materials, $386,100; Direct Labor, $200,100; Factory Overhead, $220,300 and Selling Expenses, $39,500. A) $420,400B) $806,500C) $606,400D) $180,800

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  1. 23 January, 22:17
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    Option (A) is correct.

    Explanation:

    Given that,

    Direct Materials = $386,100

    Direct Labor = $200,100

    Factory Overhead = $220,300 and,

    Selling Expenses = $39,500

    Conversion costs = Direct labor + factory overhead

    = $200,100 + $220,300

    = $420,400

    Therefore, the conversion costs for the company is $420,400.
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