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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The solution explains how to calculate conversion costs.
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