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17 April, 22:57

LO 2.2Conversion costs include all of the following except:

wages of production workers

depreciation on factory equipment

factory utilities

direct materials purchased

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Answers (1)
  1. 18 April, 01:25
    0
    direct materials purchased

    Explanation:

    The conversion cost is a combination of both the direct labor cost and the manufacturing overhead cost

    In mathematically,

    Conversion cost = Direct labor cost + manufacturing overhead cost

    where,

    Direct labor cost equals to wages of production workers

    And, the manufacturing overhead cost includes depreciation on factory equipment, factory utilities, property taxes, factory manager salary, etc
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