Department S had no work in process at the beginning of the period. It added 12,000 units of direct materials during the period at a cost of $84,000; 9,000 units were completed during the period; and 3,000 units were 30% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. Direct labor was $49,500 and factory overhead was $9,900.
The total conversion costs for the period were
A) $59,400
B) $49,500
C) $143,400
D) $9,900

Question

Quizplus · Accepted Answer

Conversion costs include direct labor and factory overhead. Therefore, the total conversion costs are $49,500 (direct labor) + $9,900 (factory overhead) = $59,400.

Department S Had No Work in Process at the Beginning