The following costs were incurred in May:

Direct materials $43,500
Direct labor $29,100
Manufacturing overhead $26,100
Selling expenses $18,800
Administrative expenses $37,700

Conversion costs during the month totaled: ___________

Respuesta :

The conversion cost during the month is $55,200.

As we know that the conversion cost should only include the direct labor and the manufacturing overhead.

So, the conversion cost should be

= Direct labor + manufacturing overhead

= $29,100 + $26,100

= $55,200

Therefore we can conclude that the conversion cost during the month is $55,200.

Learn more about the conversion cost here: brainly.com/question/18365833

  • Direct labor & overhead amount paid during the conversion of raw materials into finished goods will be included in conversion costs.
  • To judge the efficiency of the production operations, this also takes into account the overhead costs which are not included in prime cost calculations.
  • These Operations Managers have used processing costs to evaluate where there could be waste in the production process.
  • Since we all know, the statutory accounts should only include direct labor and manufacturing overhead. So, as a result, the conversion cost should be

           [tex]=\bold{\text{Direct labor + manufacturing overhead}}[/tex]

            [tex]= \bold{\$29,100 + \$26,100}\\\\= \bold{\$55,200}[/tex]

Therefore, the conversion cost during the month is "$55,200".

Learn more:

conversion cost: brainly.com/question/15874990