Craigmont Company's direct materials costs are $3,000,000, its direct labor costs total $7,000,000, and its factory overhead costs total $5,000,000.
-Its conversion costs total:
A) $12,000,000.
B) $5,000,000.
C) $15,000,000.
D) $10,000,000.
E) $8,000,000.

Question

Craigmont Company's direct materials costs are $3,000,000, its direct labor costs total $7,000,000, and its factory overhead costs total $5,000,000. 
-Its conversion costs total:
A) $12,000,000.
B) $5,000,000.
C) $15,000,000.
D) $10,000,000.
E) $8,000,000.

Quizplus · Accepted Answer

Conversion costs include direct labor and factory overhead costs.

Craigmont Company's Direct Materials Costs Are $3,000,000, Its Direct Labor