Choco's Chocolates incurs these costs for the month: Direct materials$15,000 Direct labor25,000 Factory depreciation expense45,000 Factory utilities expense2,000 Payroll staff's salary15,000 What is the conversion cost?

The conversion cost is computed as total of direct labor and manufacturing overheads.

Answered: Choco's Chocolates incurs these costs…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Choco's Chocolates incurs these costs for the month:

	Direct materials	$15,000
	Direct labor	25,000
	Factory depreciation expense	45,000
	Factory utilities expense	2,000
	Payroll staff's salary	15,000

What is the conversion cost?

Choco's Chocolates incurs these costs for the month: Direct materials $15,000 Direct labor 25,000 Factory depreciation expense 45,000 Factory utilities expense 2,000 Payroll staff's salary 15,000 What is the conversion cost?