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<p>Conversion cost will be: </p> <p>A) Rs.150,000 </p> <p>B) Rs.175,000 </p> <p>C) Rs.125,000 </p> <p>D) Rs.225,000</p>
RS125000
C)125000
Conversion Cost= Direct Labor + Factory Overhead
125,000
C
Conversion costs are the combination of direct labor costs plus manufacturing overhead costs.You can think of conversion costs as the manufacturing or production costs necessary to convert raw materials into products. Expressed another way, conversion costs are a manufacturer's product or production costs other than the costs of raw materials.
Right Answer is Option C) Rs.125,000
Option is C
Conversion Cost = Direct labor (75,000 ) + FOH (50,000)
= Rs125,000
There are two components in the conversion cost: manufacturing overhead cost such as utilites, electricity, maintenance cost, and direct labour cost. The correct answer is50,000+75,000=1,25000
Answer is C
Rs.75000 + Rs.50000 = Rs.125000/- is the conversion cost
