A company manufactures wallets. Last month's costs were: What were the conversion costs for the month?

Question

A company manufactures wallets. Last month's costs were:  What were the conversion costs for the month?

Quizplus · Accepted Answer

Conversion costs are the manufacturing overhead costs involved in converting raw materials into finished products. In the given cost breakdown, the total manufacturing overhead costs are $422,000 (direct labor + manufacturing overhead). If we subtract the cost of raw materials ($185,000) from this amount, we get the conversion costs: $422,000 - $185,000 = $237,000. Therefore, the correct answer is C.

A Company Manufactures Wallets