Which conversion cost includes all manufacturing cost

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Problem 1: Over-applied overhead that is material in amount is allocated between Finished Goods inventory, Work in process Inventory and Cost of Goods sold at year end. Over-applied factory overhead that is immaterial in amount is closed to Cost of Goods Sold at year end.

a. First and second sentence are true
b. First and second sentence are false
c. Only the first statement is true
d. Only the second statement is true

Problem 2: Process costing is most appropriate when manufacturing large batches of homogeneous products. Conversion cost includes all manufacturing cost other than direct materials.

a. First and second sentence are true
b. First and second sentence are false
c. Only the first statement is true
d. Only the second statement is true

Reference no: EM132724859

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