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23 September, 14:52

Pomelo Orange manufactures orange juice. Last month's total manufacturing costs for the Jackson operation included: Direct materials $400,000 Direct labor 36,000 Manufacturing overhead 110,000 What was the conversion cost for Pomelo Orange's Jackson operation last month?

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  1. 23 September, 15:48
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    Conversion cost = $146,000

    Explanation:

    Giving the following information:

    Direct materials $400,000

    Direct labor 36,000

    Manufacturing overhead 110,000

    What was the conversion cost for the last month?

    Conversion cost = direct labor + manufacturing overhead

    Conversion cost = 36,000 + 110,000 = $146,000
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