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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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The solution explains how to calculate conversion costs.

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