Question

The following costs were incurred in September:

Direct materials $44,200
Direct labor $31,800
Manufacturing overhead $25,200
Selling expenses $22,100
Administrative expenses $37,100

Conversion costs during the month totaled:

a. $160,400
b. $76,000
c. $69,400
d. $57,000

Answer 1

Option (d) is correct.

Step-by-step explanation:

Given that,

Direct materials = $44,200

Direct labor = $31,800

Manufacturing overhead = $25,200

Selling expenses = $22,100

Administrative expenses = $37,100

Conversion cost:

= Direct labor + Manufacturing overhead

= $31,800 +$25,200

= $57,000

Therefore, the conversion costs during the month totaled $57,000.