Type your answer in the box. The following information is for S&P Enterprises fo

Question

Type your answer in the box. The following information is for S&P Enterprises for the month of September: Direct materials irect labor $82,000 $51,000 ariable manufacturing overhead $32,000 Fixed manufacturing overhead $30,000 $16,000 $15,000 Variable selling expense Fixed selling expense Variable administrative expense $9,000 Fixed administrative expense $18,000 Total conversion cost for the month of September was$ whole number) Enter your answer as a Read about this Do you know the answer? I know It Think so Unsure No idea 8 3 4

Explanation / Answer

Conversion Cost :

Conversion cost is the cost or expenditure incurred by the manufacturing unit to convert the raw material into Finished Goods.

It includes:

1. Direct Labour

2. Manufacturing overheads. ( Both Fixed and Variable Manufacturing Overheads)

Conversion cost =

Direct Labout+Variable Manufacturing OVerheads + Fixed Manufacturing Overheads.

Conversion Cost =$51,000+$32,000+$30,000 = $113,000

Answer: Total Conversion cost for the month of September =$113,000

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