Question

Compute conversion costs given the following data: Direct Materials, $347,500; Direct Labor, $196,300; 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

Answer:

$384,200

operating costs that are shown on the income statement in the period in which they are incurred

Explanation:

The computation is shown below:

For conversion cost

= Direct labor + Factory overhead

= $196,300 + $187,900

= $384,200

The conversion cost records the combination of both the direct labor and the factory overhead

And, the period cost is that cost which includes the major portion of the selling and administrative expense plus it would be recognized with the passage of time