A company manufactures organic juices.Last month's costs were: $$\begin{array} { | l | r | }
\hline { \text { Direct } } & \
\text { materials } & \$ 210,000 \
\hline \text { Direct labor } & \$ 175,000 \
\hline \begin{array} { l }
\text { Marufacturing } \
\text { overhead }
\end{array} & \$ 75,000 \
\hline
\end{array}$$ What were the conversion costs for the month?

Question

A company manufactures organic juices.Last month's costs were: $$\begin{array} { | l | r | } 
\hline { \text { Direct } } & \
\text { materials } & \$ 210,000 \
\hline \text { Direct labor } & \$ 175,000 \
\hline \begin{array} { l } 
\text { Marufacturing } \
\text { overhead }
\end{array} & \$ 75,000 \
\hline
\end{array}$$ What were the conversion costs for the month?

Quizplus · Accepted Answer

Conversion costs include direct labor and manufacturing overhead. So, the conversion costs for the month are $175,000 + $75,000 = $250,000.

A Company Manufactures Organic Juices What Were the Conversion Costs for the Month? A)$250,000 B)$385,000

A Company Manufactures Organic Juices What Were the Conversion Costs for the Month?
A)$250,000
B)$385,000