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The following costs were incurred in September: Factory supplies
The following costs were incurred in September: Factory supplies....... Administrative wages and salaries... Direct materials......... Sales staff salaries. Factory depreciation...... Corporate headquarter building rent...... Indirect labor....... Advertising Direct labor. .$8,000 .$ 105,000 .$153,000 $68,000 $49,000 .$34,000 .$32,000 $103,000 ..$83,000 What are the total conversion costs for the year? A $236,000 B $170,000 None of the options are correct D $140,000
Expert Solution
Conversion costs = Direct labor + Manufacturing overhead costs
Manufacturing overhead costs = Factory supplies + Factory depreciation + Indirect labor
Conversion costs =$(83,000 + 8,000 + 49,000 + 32,000)
=$ 172,000
The conversion costs for the year is $ 172,000.
The correct answer is option c i.e. none of the options are correct.
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