Question

Compute conversion costs given the following data: 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

Answer 1

Answer:

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.