Question

Department S had no work in process at the beginning of the period. 12,000 units of direct materials were added during the period at a cost of $84,000, 9,000 units were completed during the period, and 3,000 units were 30% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. Direct labor was $49,500 and factory overhead was $9,900. The total conversion costs for the period were:

Answer 1

$59,400.

Step-by-step explanation:

The conversion costs are the costs of converting direct materials into finished products. Is the addition of direct labor plus manufacturing overhead.

The direct labor is the labor which takes and active and direct part in the production of a particular commodity or rendering service.

Manufacturing overhead includes all manufacturing costs that are not considered direct materials or direct labor. By definition, it includes indirect materials and indirect labor.

Conversion cost = direct labor + manufacturing overhead

Conversion cost = $49,500 + $9,900

Conversion cost = $59,400