Prime cost: Prime cost refers to a cost which is directly involved in the process of manufacturing an item. Prime cost includes direct material, and direct labor costs. Conversion cost: A conversion cost refers to the cost of converting the raw materials into a finished product. Conversion cost includes direct labor as well as factory overhead costs. To distinguish: Between the prime cost, and the conversion cost.

Question

Want to see the full answer?

Answer 1

Question

Chapter 15, Problem 4DQ

To determine

Prime cost:

Prime cost refers to a cost which is directly involved in the process of manufacturing an item. Prime cost includes direct material, and direct labor costs.

Conversion cost:

A conversion cost refers to the cost of converting the raw materials into a finished product. Conversion cost includes direct labor as well as factory overhead costs.

To distinguish: Between the prime cost, and the conversion cost.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

If annual demand is 24,000 units, orders are placed every 0.5 months, and the cost to place an order is $50, what is the annual ordering cost?

Provide correct answer general Accounting question

The contribution margin ratio is calculated as how? a) Gross margin divided by sales b) Operating income divided by sales c) Contribution margin divided by sales d) Net income divided by sales.Answer this question

Answer 2

Question

Chapter 15, Problem 4DQ

To determine

Prime cost:

Prime cost refers to a cost which is directly involved in the process of manufacturing an item. Prime cost includes direct material, and direct labor costs.

Conversion cost:

A conversion cost refers to the cost of converting the raw materials into a finished product. Conversion cost includes direct labor as well as factory overhead costs.

To distinguish: Between the prime cost, and the conversion cost.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 15, Problem 4DQ

To determine

Prime cost:

Prime cost refers to a cost which is directly involved in the process of manufacturing an item. Prime cost includes direct material, and direct labor costs.

Conversion cost:

A conversion cost refers to the cost of converting the raw materials into a finished product. Conversion cost includes direct labor as well as factory overhead costs.

To distinguish: Between the prime cost, and the conversion cost.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 15, Problem 4DQ

To determine

Prime cost:

Prime cost refers to a cost which is directly involved in the process of manufacturing an item. Prime cost includes direct material, and direct labor costs.

Conversion cost:

A conversion cost refers to the cost of converting the raw materials into a finished product. Conversion cost includes direct labor as well as factory overhead costs.

To distinguish: Between the prime cost, and the conversion cost.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 15, Problem 4DQ

To determine

Prime cost:

Prime cost refers to a cost which is directly involved in the process of manufacturing an item. Prime cost includes direct material, and direct labor costs.

Conversion cost:

A conversion cost refers to the cost of converting the raw materials into a finished product. Conversion cost includes direct labor as well as factory overhead costs.

To distinguish: Between the prime cost, and the conversion cost.

Answer 6

Chapter 15, Problem 4DQ

To determine

Prime cost:

Prime cost refers to a cost which is directly involved in the process of manufacturing an item. Prime cost includes direct material, and direct labor costs.

Conversion cost:

A conversion cost refers to the cost of converting the raw materials into a finished product. Conversion cost includes direct labor as well as factory overhead costs.

To distinguish: Between the prime cost, and the conversion cost.

Answer 7

Chapter 15, Problem 4DQ

To determine

Prime cost:

Prime cost refers to a cost which is directly involved in the process of manufacturing an item. Prime cost includes direct material, and direct labor costs.

Conversion cost:

A conversion cost refers to the cost of converting the raw materials into a finished product. Conversion cost includes direct labor as well as factory overhead costs.

To distinguish: Between the prime cost, and the conversion cost.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 15 - What are the major differentes between managerial...Ch. 15 - A. Differentiate between a department with line...Ch. 15 - What manufacturing cost term is used to describe...Ch. 15 - Prob. 4DQ Ch. 15 - What is the difference between a product cost and...Ch. 15 - Name the three inventory accounts for a...Ch. 15 - In What order should the three inventories of a...Ch. 15 - Prob. 8DQ Ch. 15 - Prob. 9DQ Ch. 15 - How does the Cost of Goods Sold section of the...

Solution Summary: The author distinguishes between the prime cost and the conversion cost. Prime cost includes direct material, and direct labor costs, while conversion costs include factory overhead costs.

Concept explainers

Videos

Want to see the full answer?

Chapter 15 Solutions