Question

Robin Company has the following balances for the current month: Direct materials used Direct labor Sales salaries Indirect labor Production managers salary Marketing costs Factory lease $ 10,500 21,000 $ 15,230 $ 2,890 $ 4.950 $ 10,000 $ 4,400 What are Robins conversion costs? O ss0850 O s33.240 O $36,450 O $31500
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Answer #1

$33240

Conversion cost required to convert raw material into finished goods.It is combination of direct labour and manufacturing overhead.

Conversion cost = Direct labour+Indirect labour+Production's manager salary+Factory lease

=$21000+$2890+$4950+$4400

=$33240

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