Craigmont company's direct materials costs are $3,100,000, its direct labor costs total $7,090,000, and its factory overhead costs total $5,090,000. its conversion costs =$12,180,000
so the values we get from the exercise are:
direct materials costs = $3,100,000
direct labor costs total = $7,090,000
actory overhead costs total = $5,090,000
therefore the conversion cost will be gioven by the formula:
conversion costs= direct labor costs+factory overhead
conversion costs=(7,090,000+5,090,000)
conversion costs=$12,180,000
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