A company manufactures exterior paint.Last month's costs were: $$\begin{array} { | l | l | }
\hline{ \text { Direct } } & \
\text { materials } & \$ 110,000 \
\hline \text { Direct labor } & \$ 150,000 \
\hline \begin{array} { l }
\text { Marufacturing } \
\text { averhead }
\end{array} & \$ 135,000 \
\hline
\end{array}$$ What were the conversion costs for the month?

Question

A company manufactures exterior paint.Last month's costs were: $$\begin{array} { | l | l | } 
\hline{ \text { Direct } } & \
\text { materials } & \$ 110,000 \
\hline \text { Direct labor } & \$ 150,000 \
\hline \begin{array} { l } 
\text { Marufacturing } \
\text { averhead }
\end{array} & \$ 135,000 \
\hline
\end{array}$$ What were the conversion costs for the month?

Quizplus · Accepted Answer

Conversion costs include direct labor and manufacturing overhead. In this case, the direct labor costs are $105,000 and the manufacturing overhead costs are $180,000, adding up to a total of $285,000 in conversion costs for the month.

A Company Manufactures Exterior Paint What Were the Conversion Costs for the Month? A)$260,000 B)$395,000

A Company Manufactures Exterior Paint What Were the Conversion Costs for the Month?
A)$260,000
B)$395,000