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Identify the Following Costs as (A) Prime Cost, (B) Conversion

Question 155

Essay

Identify the following costs as (a) prime cost, (b) conversion cost, (c) or both for a cake factory.
1. _____ Frosting
2. _____ Wages of the baker
3. _____ Sprinkles for the topping (considered an indirect material)
4. _____ Depreciation on oven

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