Question

Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes. Shown below are some of the costs incurred by Vignana for last year: Cost of clay used in production Wages paid to the workers who paint the figurines Wages paid to the sales manager's secretary $34,000 Cost of junk mail advertising $67,000 $82,000 $51,000 What is the total of the conversion costs above?

Answer 1

Option A is the answer

Conversion cost :- Cost of converting raw materials into finished goods
Of all the given amounts, only wages paid to workers who paid paint the figurines is the conversion cost