Question

The following costs were incurred in May:

Direct materials $42,200
Direct labor $32,800
Manufacturing overhead $25,400
Selling expenses $18,800
Administrative expenses $40,200

Conversion costs during the month totaled: __________

Answer 1

the conversion cost is $58,200

Step-by-step explanation:

The computation of the conversion cost is shown below:

The conversion cost is

= Direct Labor + Manufacturing Overhead

= $32,800 + $25,400

= $58,200

Hence, the conversion cost is $58,200

It is the combination of the direct labor and the manfacturing overhead