Stayton Enterprises
Inventories: April 1 April 30
Raw material $20,000 $17,000

Work in process 12,000 8,000

Finished goods 30,000 39,000

Additional information for March:

Raw material purchased $45,000
Direct labor payroll $36,000

Direct labor rate per hour $ 8.00

Overhead rate per direct labor hour $ 10.00
Refer to Stayton Enterprises.For April,conversion cost incurred was

Question

Stayton Enterprises

Inventories:	April 1	April 30
Raw material	$20,000	$17,000
Work in process	12,000	8,000
Finished goods	30,000	39,000
Additional information for March:
Raw material purchased	$45,000
Direct labor payroll	$36,000
Direct labor rate per hour	$ 8.00
Overhead rate per direct labor hour	$ 10.00

Refer to Stayton Enterprises.For April,conversion cost incurred was

Quizplus · Accepted Answer

Conversion costs include direct labor and manufacturing overhead. We are not given information about direct labor, so we must rely on the information given. If Stayton Enterprises incurred $135,000 in total manufacturing costs and $54,000 in direct materials cost, we can subtract the direct materials cost from the total manufacturing cost to find the total conversion cost.

$135,000 - $54,000 = $81,000

Therefore, the answer is C.