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9 May, 03:33

The following costs were incurred in September: 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:

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  1. 9 May, 06:00
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    Conversion costs during the month totaled: $55,200

    Explanation:

    Conversion costs are those production costs required to convert raw material to finished goods. Conversion costs include direct labor and manufacturing overheads.

    Conversion Costs = Direct Labor + Manufacturing Overheads = Total Manufacturing Costs - Direct Material.

    During September, Direct labor were incurred of $29,100, Manufacturing overhead were incurred of $26,100.

    Conversion Costs = $29,100 + $26,100 = $55,200
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