Asked by Adrian Batista on Jul 30, 2024
Verified
Which of the following costs incurred by a tool manufacturer would not be included in conversion costs?
A) factory supervisor's salary
B) machine operator's wages
C) raw steel
D) factory maintenance personnel supplies
Conversion Costs
The combined costs of direct labor and overhead that are incurred to convert raw materials into finished products.
Raw Steel
The unprocessed product from melting iron ore, scrap steel, and other additives in a blast furnace, which is the base material for making steel products.
- Identify and calculate conversion costs in a manufacturing environment.
Verified Answer
AW
andrew WoodallAug 03, 2024
Final Answer :
C
Explanation :
Raw materials are part of direct materials, not conversion costs. Conversion costs include direct labor and manufacturing overhead.
Learning Objectives
- Identify and calculate conversion costs in a manufacturing environment.
Related questions
In the Manufacture of 8,000 Units of a Product, Direct ...
Which of the Following Costs Incurred by a Paper Manufacturer ...
A Company's Prime Costs Total $3,000,000 and Its Conversion Costs ...
Which of the Following Costs Incurred by a Paper Manufacturer ...
Which of the Following Costs Incurred by a Paper Manufacturer ...