What would be value of conversion cost, if the cost of material consumed during the month is $5,000, labor incurred is $2,000 and FOH cost is $1,000?

Question added by Muhammad Ramzan Tufail ACCA , Assistant Finance Manager , Eltizam Asset Management Group
Date Posted: 2015/06/29

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by mohamed Hakim CMA CPA Candidate , Accounting Manager , Andersen saudi arabia

Conversion costs = Direct labor + Manufacturing overhead

3000 = 2000 + 1000

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by Zehab Osman , Accountant , Aldar Consultancy Co.

A-------------------------------------------------------------------

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by Ahmed kandil , Cost Controller , Battour Holding Cpompany

correct answer is3000

thank you

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by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Option A is the right answer.

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by lakshminarasimham mallareddi , Manager Finance & Accounts , M/s. Vandana Global Limited, Raipur, Chhattisgarh

Correct Answer is C) $7000 would be the conversion cost

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