Figure 6-4 The following information is available from the records of Diamond Cut, Inc.:
Refer to Figure 6-4. What are the conversion costs in the Finishing Department?

Question

Figure 6-4 The following information is available from the records of Diamond Cut, Inc.:
 Refer to Figure 6-4. What are the conversion costs in the Finishing Department?

Quizplus · Accepted Answer

Conversion costs are the direct labor and overhead costs. In the Finishing Department, the total direct labor cost is $25,000 and the total overhead cost is $15,000. Therefore, the total conversion costs in the Finishing Department are $25,000 + $15,000 = $40,000.

Figure 6-4 the Following Information Is Available from the Records