Overhead is part of conversion costs and prime costs.
True
False
Answer : False
Prime cost includes only the Direct Material and Direct Labor. Overhead cost not included in Prime cost.
Convention cost included all the Direct labor and the overheads involved in the conversion of MAterial into Finished Goods
2. Direct Labor Costs + Manufacturing Overhead: a. Conversion Cost b. Prime Cost c. Manufacturing Overhead d. Work in Process
Problem 1: Calculate the conversion costs and prime costs from the following information: Fixed manufacturing overhead $ 5,000 Variable manufacturing overhead 1,000 Direct materials 3,500 Direct labor 1,500 CEO salary 10,000
GIVEN THE FOLLOWING FOR A COMPLETED JOB TOTAL PRIME COSTS TOTAL CONVERSION COSTS OVERHEAD IS 200% OF DIRECT LABOR $40,000 $30,000 COMPUTE DIRECT MATERIAL COST DIRECT LABOR COST OVERHEAD COST TOTAL MANUFACTURING COSTS #2 GIVEN THE FOLLOWING DIRCT MATERIAL= $400,000 DIRECT LABOR = $200,000 OVERHEAD =$100,000 TOTAL MANUFACTURING COST ASSUME ALL WIP WAS COMPLETED AND TRANSFERRED TO FINISHED GOODS MAKE THE ENTRY COST OF GOODS MANUFACTURED ASSUME ALL FINISHED GOODS WERE SOLD MAKE THE ENTRY FOR COST OF GOODS SOLD
A company’s prime costs total $5,500,000 and its conversion costs total $9,500,000. If direct materials are $2,500,000 and factory overhead is $6,250,000, then direct labor is:
True or False: direct material and direct labor are called conversion costs
Exercise 4 (Classification of costs, prime and conversion costs) Tanaka Metal Products reports the following components in its manufacturing costs for April 20X1 (in thousands): Direct costs: P430 Direct materials Direct manufacturing labor salaries Subcontracting 110 120 P 660 Manufacturing overhead: Fringe benefits on direct manufacturing labor Production setup Other manufacturing overhead 40 60 340 P1,000 240 Subcontracting costs are treated as a direct-cost item separate from direct materials. Required 1. Compute (a) the prime costs and (b) the conversion...
2.Which of the following costs is both a prime cost and a conversion cost? direct materials direct labor manufacturing overhead administrative costs
Conversion costs are a type of acquisition cost. Question 31 options: True False
Total costs less overhead costs equals to material costs. True False
Assume the following information pertaining to Cub Company: Prime costs $ 202,000 Conversion costs 235,000 Direct materials used 89,900 Beginning work in process 104,300 Ending work in process 83,800 Factory overhead is calculated to be: