PRIME COST AND CONVERSION COST

Slapshot Company makes ice hockey sticks. Last week, direct materials (wood, paint, Kevlar, and resin) costing $24,000 were put into production. Direct labor of $40,000 (20 workers × 100 hours × $20 per hour) was incurred. Manufacturing overhead equaled $56,000. By the end of the week, the company had manufactured 4,000 hockey sticks.

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