Question

Question 4 Not vet answered Marked out of 1.00 P Flag question Lager Ltd.'s production volume and per unit information for the year is given below: Per unit information Direct labour Direct material Applied manufacturing overhead $13 10 Unit production (budget) Unit production (actual) For Lager's total units produced this year, how much were the conversion costs? 22967 34512 Select one a. $621216 b. $793776 c. $413406 d. $966336

Answer 1

The Answer is a. $621 ,21 6 Conversion cost is the cost incurred to convert direct raw materials into finished goods. In other words, it is the manufacturing cost incurred to convert raw materials into finished goods. Conversion cost Direct Labor cost + Manufacturing Overhead Number of units actually produced 34512 units Direct labor cost incurred per uni $13 Applied manufacturing overhead per unit S5 Conversion cost to produce 34,512 units Direct Labor cost+ Manufacturing Overhead (34,512 units x $13 per unit)+ (34,512 units x $5 per unit) = $448,656 + $172,560 =$621,216 Conversion cost- $621,216