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slavikrds [6]
3 years ago
10

Compute conversion costs given the following data: direct materials, $350,300; direct labor, $205,100; factory overhead, $177,00

0 and selling expenses, $45,700.
a. $543,800.
b. $384,200.
c. $187,900.
d. $731,700.
Business
1 answer:
IRINA_888 [86]3 years ago
3 0

Answer:

$382,100

Explanation:

The computation of the conversion cost is shown below;

Conversion cost is

= direct labor cost + factory overhead cost

where,

Direct labor cost is $205,100

And, the factory overhead cost is $177,000

Now place these values to the above formula

So, the conversion cost is

= $205,100 + $177,000

= $382,100

This is the answer but the same is not provided in the given options

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Option 3 is also incorrect because it talks about increasing inefficiency. Remember: Efficiency is increasing output at a set level of input.

Option 4 is also incorrect because transformational process doesn't includes the selling of inputs. Inputs are raw material, labor hours, overhead cost, etc these are not sold by any companies. However their is a possibility that semi finished goods are sold to other companies like Apple purchased Mobile displays from Samsung to meet its customer demand.

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<em>Fun Fact: In Canada, they call a group of rabbits a fluffle! </em>

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