COST ACCOUNTING
PROCESS COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Direct labor + manufacturing overhead
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Cost to convert finished goods to sales
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Cost for direct and indirect materials
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Direct material + direct labor + manufacturing overhead
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Detailed explanation-1: -Conversion costs are the total of direct labor and factory overhead costs. They are combined because it is the labor and overhead together that convert the raw material into the finished product.
Detailed explanation-2: -Conversion costs include the manufacturing costs that are needed to convert direct materials into final products: direct labor costs and manufacturing overhead costs.
Detailed explanation-3: -Types of Conversion Costs Examples of costs that may be considered conversion costs are: Direct labor and related benefits and payroll taxes. Equipment depreciation. Equipment maintenance.
Detailed explanation-4: -noun. : the combined total of direct labor cost and burden incurred in processing raw materials to a finished state.
Detailed explanation-5: -These include electricity bills, rent, depreciation, plant insurance, repairs and maintenance of plants, etc. Direct Labor. read more is the direct cost associated with manufacturing the product, such as wages, salaries to workers, pension funds.