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The following costs were incurred in August: Direct Materials $18,000 Direct Labor $21,000 Manufacturing Overhead $33,000 Selling Expenses $14,000 Administrative Expenses $19,000 Conversion costs during the month of August totaled: a. $39,000. b. $105,000. c. $54,000. d. $51,000.

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ayokenny2001

Answer:

C. $54,000

Explanation:

Given the following information,

Direct labor = $21,000

Manufacturing overhead = $33,000

Conversion cost refers to the sum of direct labor and manufacturing overhead

Conversion cost = Direct labor + Manufacturing overhead

Conversion cost = $21,000 + $33,000

Conversion cost = $54,000

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