Posted: August 28th, 2016

Conversion costs are?

labor is applied at $22.50 per hour for the machine operator and $11.10 for the machine loader. The job required 6 1/2 hours of labor by the team.
When the job was complete Job 051507A was transferred to Semi-finished Goods Inventory (SFGI). When the job was transferred, 20 sheets were returned unused to raw material inventory, 75 grommet sets were returned, and there were 1,115 strokes on the counter.
Journalize all events depicted as of May 15th.
(a) Journalize the purchasing of raw materials.
(b) Journalize the application of manufacturing overhead.
(c) Journalize the application of direct labor.
(d) Journalize the transfer to Semi-finished Goods Inventory (SFGI).
For a compound transaction, if an amount box does not require an entry, leave it blank or enter “0”. If required, round your answers to two decimal places.
Temporary investments
a. do not include equity securities
b. include cash equivalents
c. are reported as current assets
d. all of these
Conversion costs are
a. direct materials and factory overhead
b. factory overhead and direct labor
c. direct materials and indirect labor
d. direct materials and direct labor
The cost of wages paid to employees directly involved in converting materials to finished product is classified as direct labor cost.
a. True
b. False