Direct materials for a company were $500,000; manufacturing overhead was $250,000; and direct labor was $770,000. conversion costs would totala) $1,020,000.b) $1,270,000.c) $1,520,000.d) $750,000.

A) $1,020,000

Explanation:

Conversion cost = All the cost incurred to convert raw material into finished goods, this only includes direct labor cost and manufacturing cost.

Thus, here as for provided information,

Manufacturing overhead = $250,000

Direct Labor = $770,000

Thus, conversion cost = $250,000 + $770,000 = $1,020,000

Conversion cost is the cost of efforts made to convert raw material to finished goods, but it does not include raw material cost.

A) $1,020,000

conversion cost of the compnay is $1020000

Explanation:

Given data:

Direct material = $500, 000

Manufacturing overheads = $250,000

Direct labor cost = $770,000

conversion cost  is given as

conversion cost = direct labor cost + manufacturing overheads

PUTTING ALL VALUE TO GET  CONVERSION COST VALUE

conversion cost = 770000+250000 = $1020000

thereforer conversion cost of the compnay is $1020000

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whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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