Conversion costs include direct labor and direct materials associated with converting units,so that they can be transferred out of Work in Process.

Name: Conversion costs include direct labor and direct materials associated with converting units,so that they can be transferred out of Work in Process.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Conversion costs include direct labor and manufacturing overhead costs, not direct materials. Direct materials are considered a separate component of manufacturing costs.

Conversion Costs Include Direct Labor and Direct Materials Associated with Converting