Question

LO 2.2Conversion costs include all of the following except:

wages of production workers
depreciation on factory equipment
factory utilities
direct materials purchased

Answer 1

direct materials purchased

Step-by-step explanation:

The conversion cost is a combination of both the direct labor cost and the manufacturing overhead cost

In mathematically,

Conversion cost = Direct labor cost + manufacturing overhead cost

where,

Direct labor cost equals to wages of production workers

And, the manufacturing overhead cost includes depreciation on factory equipment, factory utilities , property taxes, factory manager salary, etc