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What would conversion costs if costs of raw materials, direct labor costs, and manufacturing overhead costs Rs. 80,000, Rs. 50,000 and Rs. 60,000, respectively?
  1. Rs. 190,000
  2. Rs. 110,000
  3. Rs. 130,000
  4. None of these
Explanation
  • Conversion Cost Formula = Direct Labor Cost + Manufacturing Overhead Cost

  • Given:
    • Direct Labor Cost = Rs. 50,000
    • Manufacturing Overhead Cost = Rs. 60,000
    • Conversion Cost = 50,000 + 60,000 = Rs. 110,000

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