Problem:
Management of Lewallen Corporation has asked your help as an intern in preparing some key reports for September. Direct materials cost was $66,000, direct labor cost was $52,000, and manufacturing overhead was $80,000. Selling expense was $24,000 and administrative expense was $41,000.
The conversion cost for September was:
$132,000
$156,000
$198,000
$131,000
Note: Be sure to show how you arrived at your answer.