The following costs were incurred in august:
direct materials $37,000
direct labor $14,000
manufacturing overhead $38,000
selling expenses $10,000
administrative expenses $28,000
conversion costs during the month totaled:

a. $127,000
b. $52,000
c. $51,000
d. $75,000

b. $52,000

Explanation:

The formula to compute the conversion cost is shown below:

= Direct labor cost + Manufacturing overhead cost

= $14,000 + $38,000

= $52,000

We simply added the direct labor and the manufacturing overhead so that the conversion cost should be calculated. It is a combination of the direct labor cost and the manufacturing overhead cost

All other information which is given is not relevant. Hence, ignored it

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