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conversion cost = direct wages + factory overheads (indirect material + indirect wages)

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Alphonso Nicolas

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3y ago
great answer, tyyy!

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Q: What is conversion cost in cost sheet?
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Is Direct material cost combined with manufacturing overhead cost is known as conversion cost?

false, direct labor and manufacturing overhead = conversion cost


What is a cost sheet?

A cost sheet is a report on which is accumulated all of the costs associated with a product. It is used to compile the margin earned on a product or job.


What is the direct labor cost if a company's direct labor is 40 percent of its conversion cost and the manufacturing overhead cost for the last period was 60000 and the direct materials cost was 30000?

To calculate the direct labor cost, we first need to determine the total conversion cost. Since direct labor is 40% of the conversion cost, indirect labor must be 60%. Therefore, the total conversion cost is 60000 / 0.6 = 100000. Since direct labor is 40% of the conversion cost, direct labor cost is 100000 * 0.4 = 40000. So, the direct labor cost is $40,000.


Is Conversion cost is the sum of direct labor and manufacturing overhead?

Yes conversion cost is sum of direct labor and overheads which required to run the process of production of units.


Abel companys manufacturing overhead is 20 percent of its total conversion costs If direct labor is 38000 and if direct material are 47000 the manufacturing overhead is?

Well, honey, if manufacturing overhead is 20% of total conversion costs, and direct labor is $38,000 and direct materials are $47,000, then total conversion costs would be $38,000 + $47,000 = $85,000. So, if manufacturing overhead is 20% of that, it would be 0.20 x $85,000 = $17,000. So, the manufacturing overhead would be $17,000.