Refer to the following data.Direct material usedSelling costsIndirect labourAdministrative costs$150 000$5.000$7.000$10 000Depreciation on factory equipment$70 000Direct labour$40 000Overtime premiums paid$20 000Indirect materials$45 000The conversion costs are:O a. $150 000.O b. $142 000.O c. $182 000.Od. $190 000.

Conversion Costs -Conversion cost is the price paid by a manufacturing company to transform its raw…

Answered: Refer to the following data. Direct…

Refer to the following data. Direct material used Selling costs Indirect labour Administrative costs $150 000 $5.000 $7.000 $10.000 Depreciation on factory equipment$70.000

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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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Refer to the following data.
Direct material used
Selling costs
Indirect labour
Administrative costs
$150 000
$5.000
$7.000
$10 000
Depreciation on factory equipment$70 000
Direct labour
$40 000
Overtime premiums paid
$20 000
Indirect materials
$45 000
The conversion costs are:
O a. $150 000.
O b. $142 000.
O c. $182 000.
Od. $190 000.

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