Question

Compute conversion costs given the following data: direct materials, $350,300; direct labor, $205,100; factory overhead, $177,000 and selling expenses, $45,700.

a. $543,800.
b. $384,200.
c. $187,900.
d. $731,700.

Answer 1

$382,100

Step-by-step explanation:

The computation of the conversion cost is shown below;

Conversion cost is

= direct labor cost + factory overhead cost

where,

Direct labor cost is $205,100

And, the factory overhead cost is $177,000

Now place these values to the above formula

So, the conversion cost is

= $205,100 + $177,000

= $382,100

This is the answer but the same is not provided in the given options