Question

tion Completion Status: nutes. 12 seconds Management of Lewallen Corporation has asked your help as an intern in preparing me ye Direct materials cost was $57.000, direct labor cost was $43.000, and manufacturing expense was $15,000 and administrative expense was $32,000 The conversion cost for September was: O $114,000 $131.000 $171,000 $103,000 QUESTION 29 2:57 pm In a job-order cost system, direct labor is assigned to a job using information from the employee time ticket True hofalse 2857 QUESTION 30 Direct labor is a part of prime cost, but not conversion cost. True False

Answer 1

Answer No. 28.

Conversion costs = direct labor costs + manufacturing overhead costs

=43,000+71,000

= 114000

Answer No. 29.

Ture

Reasons

The job costing system must track the cost of the labor used on a job. If a job is related to services, direct labor may comprise nearly all of the job cost. Direct labor is typically assigned to a job with a timecard (using a punch clock), timesheet (where hours worked are recorded manually), or with a networked time clock application on a computer.

Answer No. 30

False

Reasons

Direct labour is part of both prime cost and converation. When we calculate the prime cost then labour cost is consider. When we require to calculate the converation cost than labour cost is part of converation cost.