Final answer:
Conversion costs for Happy Feet Running Company encompass both direct labor, the cost of labor directly involved in production, and manufacturing overhead, which includes other indirect production costs.
Step-by-step explanation:
Conversion costs refer to the costs incurred in the process of converting raw materials into finished goods.
For Happy Feet Running Company, the conversion costs for the month would include direct labor and manufacturing overhead.
Direct labor costs are the wages paid to employees who work directly on the production process, such as assembly line workers.
Manufacturing overhead costs include indirect labor, rent for the manufacturing facility, utilities, and other expenses that are necessary for the production process but cannot be directly traced to a specific product.
To calculate the conversion costs, you would need the information for direct labor and manufacturing overhead expenses for the month.