Ellie's Candies,Inc.produces gummy bears.The company purchases raw materials,stores them in a warehouse,and then runs them through two processes: production and packaging.During September,the production process incurred the following costs in processing 20,000 gummy bears:

Use the FIFO method to compute the September conversion costs in the Production Department.

Question

Ellie's Candies,Inc.produces gummy bears.The company purchases raw materials,stores them in a warehouse,and then runs them through two processes: production and packaging.During September,the production process incurred the following costs in processing 20,000 gummy bears:

Use the FIFO method to compute the September conversion costs in the Production Department.

Quizplus · Accepted Answer

A)Conversion costs = Direct labor + Manufacturing overhead = $52,500 + $8,000 = $60,500