Asked by

Charles Huang
on Nov 18, 2024

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Which of the following costs are conversion costs?

A) direct labor cost and factory overhead cost
B) direct materials cost and direct labor cost
C) factory overhead cost
D) direct materials cost and factory overhead cost

Conversion Costs

Costs associated with converting raw materials into finished goods, including both direct labor and manufacturing overhead.

Direct Labor Cost

The wages or salaries paid to workers directly involved in the production of goods or services.

Factory Overhead Cost

Indirect manufacturing costs that are not directly tied to the production of goods, such as maintenance, utilities, and rent of the production facility.

  • Identify the differences between prime costs, conversion costs, and period costs.
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AA
Amber AltenehNov 19, 2024
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