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ABC Company has the following costs for the year: Direct Materials Used $100,000 Direct Labor Incurred 50,000 Manufacturing Overhead Incurred 20,000 Selling Expenses 40,000 Administrative Expenses 15,000 What is the amount of conversion costs for the year?

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Answer:

The correct answer is $70,000

Explanation:

The Conversion costs = (manufacturing overhead incurred + Direct labor incurred  )

Manufacturing Overhead Incurred 20,000

Direct Labor Incurred 50,000

= $50,000 + $20,000

= $70,000 is the amount of conversion costs for the year

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