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    Conversion Costs

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    The following costs were incurred in January:

    Direct materials 30,000
    Direct labor 30,000
    Manufacturing overhead 70,000
    Selling expenses 20,000
    Administrative expenses 25,000

    Conversion costs during the month totaled:

    (a) 60,000
    (b) 130,000
    (c) 175,000
    (d) 100,000

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    Solution Summary

    The solution explains how to calculate conversion costs.