Raw material, WIP
Raw material, Finished goods
WIP, Finished goods
Finished goods, Saleable goods
✅ The correct answer is B.
Conversion cost includes cost of converting Raw material into Finished goods. There are two main components of conversion costs: direct labor and manufacturing overheads.
Conversion cost includes cost of converting Raw material into Finished goods. There are two main components of conversion costs: direct labor and manufacturing overheads.