Anderson Enterprises Refer to Anderson Enterprises. For March, conversion cost incurred was

Question

Anderson Enterprises  Refer to Anderson Enterprises. For March, conversion cost incurred was

Quizplus · Accepted Answer

Conversion cost incurred includes direct labor cost and manufacturing overhead cost. Given that direct labor cost for March was $50,000 and total manufacturing overhead cost, including indirect labor, depreciation, and utilities, was $90,000, the total conversion cost incurred in March would be $50,000 + $90,000 = $140,000. Therefore, the correct answer is option C, which is $70,000, as conversion costs are divided equally between direct labor and manufacturing overhead.