Question

The following costs were incurred in May:

Direct materials $39,400
Direct labor $34,000
Manufacturing overhead $21,600
Selling expenses $19,700
Administrative expenses $38,600

Conversion costs during the month totaled: ______________

a. $61,000
b. $153,300
c. $73,400
d. $55,600

Answer 1

Answer:

d. $55,600

Explanation:

Direct Labor = $34,000

Manufacturing Overhead Cost = $21,600

Conversion Cost = Direct Labor + Manufacturing Overhead Cost

Conversion Cost = $34,000 + $21,600

Conversion Cost = $55,600

So, the conversion costs during the month totaled $55,600.