Question

BG, Inc. reported the following information related to their manufacturing costs: Direct Labor $200,000; Direct Materials $ 150,000; Manufacturing Overhead Costs $250,000. What is the total amount of BG, Inc's conversion costs?

Answer 1

$450,000

Step-by-step explanation:

Given that,

Direct Labor = $200,000;

Direct Materials = $150,000;

Manufacturing Overhead Costs = $250,000

Therefore, the total amount of conversion cost is the sum total of direct labor cost and manufacturing overhead cost.

Total amount of BG, Inc's conversion costs:

= Direct Labor cost + Manufacturing Overhead Costs

= $200,000 + $250,000

= $450,000