Total manufacturing costs equal:
A)direct materials + prime costs
B)direct materials + conversion costs
C)direct manufacturing labor costs + prime costs
D)direct manufacturing labor costs + conversion costs

Question

Quizplus · Accepted Answer

Total manufacturing costs include the cost of direct materials and the cost of converting them into finished goods, which is reflected in the conversion costs. Therefore, the correct formula for total manufacturing costs is direct materials plus conversion costs.

Total Manufacturing Costs Equal