Direct materials for a company were $501,000; manufacturing overhead was $250,600; and direct labor was $770,300. Conversion costs would total
A)$1,020,900
B)$1,271,300
C)$1,521,900
D)$751,600

Question

Quizplus · Accepted Answer

Conversion costs are the costs required to convert raw materials into finished goods and include direct labor and manufacturing overhead. Therefore, conversion costs = direct labor ($770,300) + manufacturing overhead ($250,600) = $1,020,900.

Direct Materials for a Company Were $501,000; Manufacturing Overhead Was