Homework Answers
The Answer is option (D) : $415500
Conversion cost means cost incurred for transformation of raw material into finished product.It includes total cost of manufacturing but excludes the material cost.
Conversion cost of furniture company are as follows: Amount in $
1) Depreciation on the factory equipment : 16000
2) Factory supervisor salary: 50500
3) Lubricants used in factory equipment: 3000
4) Insurance cost for factory: 21000
5) Wages paid to factory maintenance workers: 115000
6) Wages paid to assembly line workers: 155500
7) Utilities in the factory: 54500
So Total Conversion cost is 415500
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