Question 16 Figure 2-1. Concam Inc. manufactures television sets. Last month dir

Question

Question 16 Figure 2-1. Concam Inc. manufactures television sets. Last month direct materials (electronic components, etc.) costing $500,000 were put into production. Direct labor of $800,000 was incurred, overhead equaled $450,000, and selling and administrative costs totaled $360,000. The company manufactured 8,000 television sets during the month. Assume that there were no beginning or ending work in process balances. Refer to Figure 2-1: The per-unit conversion cost was: Answer $218.75 $156.25 $162.50 $100.00

Explanation / Answer

Conversion Cost = Direct Labor Cost + Manufacturing Overhead Cost per-unit conversion cost = ($800,000+ $450,000)/8000 =$156.25 $156.25

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