Management of Lewallen Corporation has asked your help as an intern in preparing some key reports for September. Direct materials cost was $57,000, direct labor cost was $43,000, and manufacturing overhead was $71,000. Selling expense was $15,000 and administrative expense was $32,000. The conversion cost for September was:
A)$114,000
B)$131,000
C)$171,000
D)$103,000

Question

Quizplus · Accepted Answer

Conversion cost is the sum of direct labor and manufacturing overhead costs. Therefore, $43,000 (direct labor) + $71,000 (manufacturing overhead) = $114,000.

Management of Lewallen Corporation Has Asked Your Help as an Intern