Question

Vignana corporation manufactures and sells hand-painted clay figurines of popular sports heroes. shown below are some of the costs incurred by vignana for last year: cost of clay used in production $ 76,000 wages paid to the workers who paint the figurines $ 99,000 wages paid to the sales manager's secretary $ 31,000 cost of junk mail advertising $ 48,000 what is the total of the conversion costs above? multiple choice $79,000 $175,000 $76,000 $99,000

Answer 1

Answer:

$175,000

Explanation:

Conversion costs are production costs that must be incurred in order to change raw materials into products.

Therefore, we have:

Total of the conversion costs = Cost of clay used in production + wages paid to the workers who paint the figurines = $76,000 + $99,000 = $175,000