Information from the records of Becker Corporation for December is as follows:

-Refer to the Figure.What are the conversion costs?
A)$564,000
B)$805,000
C)$960,000
D)$1,179,000

Question

Information from the records of Becker Corporation for December is as follows:
 
-Refer to the Figure.What are the conversion costs?
A)$564,000 
B)$805,000 
C)$960,000 
D)$1,179,000

Quizplus · Accepted Answer

Conversion costs are the sum of direct labor and manufacturing overhead costs. From the given information, direct labor costs are $400,000 and manufacturing overhead costs are $405,000. Therefore, conversion costs are $805,000 ($400,000 + $405,000).

Information from the Records of Becker Corporation for December Is