In the manufacture of 10,000 units of a product, direct materials cost incurred was $135,700, direct labor cost incurred was $82,000, and applied factory overhead was $37,500. What is the total conversion cost

The total conversion cost is $119,500.

Explanation:

Conversion cost refers to all the costs of converting or turning raw materials into finished goods. Conversion cost can therefore be obtained by deducting the cost of raw materials from  the cost of production. This implies that conversion cost is the the addition of direct labor costs and manufacturing costs.

Based on the above explanation, total conversion cost for this question can therefore be calculated as follows:

Total conversion cost = Direct labor cost + Applied factory overhead = $82,000 + $37,500 = $119,500

Therefore, the total conversion cost is $119,500.

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.