A company manufactures guitars. Identify each of the following costs as either a prime cost, a conversion

Question:

A company manufactures guitars. Identify each of the following costs as either a prime cost, a conversion cost, or both.

1. Wood used to build the guitar body.

2. Glue used to bind the guitar wood.

3. Wages paid to assembly workers.

4. Depreciation on factory equipment.

5. Rent on factory building.

6. Wood to build the guitar bridge.

Fantastic news! We've Found the answer you've been seeking!