What is the variance relating to conversion costs for March? Enter favorable variances as a positive number and unfavorable variances as a negative number.
Accounting
The production process for Rhino Car Wax begins by mixing all of the required materials. Rhino incurs conversion costs uniformly throughout the process of converting the materials to car wax.
Rhino began March with 1,000 cases of car wax in beginning inventory, 50% done for conversion. During March, Rhino started enough material for 74,500 cases of finished wax. By the end of March, Rhino had completed work on 63,250 cases, and assessed ending WIP inventory to be 60% complete with respect to conversion costs.
Finally, Rhino spent $1,697,500 on conversion costs during March.
Suppose that the
What is the variance relating to conversion costs for March? Enter favorable variances as a positive number and unfavorable variances as a negative number.
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