Argo Mfg. Co. uses approximately $1,200 in janitorial supplies to clean the work area and factory equipment

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Argo Mfg. Co. uses approximately $1,200 in janitorial supplies to clean the work area and factory equipment each month. Should this $1,200 be included in the cost of direct materials used? Explain.

a Explain the distinction between prime costs and conversion costs.

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