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Company manufactured 100

Accounting Nov 12, 2020

Company manufactured 100.000 units in 2019 and reported the folowing costs: Indirect manufacturing labor 275.200 Rental costs plant $384.000 Fire Insurance plant 116,000 Depreciation plant 224.000 Property taxes plant 32.000 Administration costs 800.000 Direct materiais. 1/1/X5 384.000 Sales revenue 12.800.000 Direct manufacturing labor 2.176,000 Direct material purchases 3,136.000 Finished goods. 12/31/X5 1.280.000 Sales commissions 840.000 Advertising costs 480.000 Sales salaries 576.000 What are the total conversion costs incurred in 2019 Select one a. $3.175.200 $ 3.207 200 C$ 3.303.200 di $3.687 200

Expert Solution

Answer: b. $3,207,200

Calculation:

Total conversion costs = Direct manufacturing labor + Total manufacturing overhead costs

Total conversion costs = $2,176,000 + $1,031,200 = $3,207,200

Total manufacturing overhead costs

Particulars $
Indirect manufacturing labor 275,200
Fire insurance - plant 116,000
Property taxes - plant 32,000
Rental costs - plant 384,000
Depreciation - plant 224,000
Total manufacturing overhead costs 1,031,200
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