The following costs were incurred in May: Direct materials $43,500
Direct labor $29,100
Manufacturing overhead $26,100
Selling expenses $18,800
Administrative expenses $37,700

Conversion costs during the month totaled:

Direct labor & overhead amount paid during the conversion of raw materials into finished goods will be included in conversion costs.To judge the efficiency of the production operations, this also takes into account the overhead costs which are not included in prime cost calculations.These Operations Managers have used processing costs to evaluate where there could be waste in the production process. Since we all know, the statutory accounts should only include direct labor and manufacturing overhead. So, as a result, the conversion cost should be

           

           

Therefore, the conversion cost during the month is "$55,200".

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conversion cost: