Prime and conversion costs Production costs can be classified in several ways. One way to classify production costs is as either prime costs or conversion costs. Write It Down produces hardbound books with blank pages for use as personal journals or diaries. The following costs are incurred in the production of the books. Identify each cost as a prime cost, a conversion cost, or both. Allen Scissors Company makes quality scissors and cutting utensils. The management is trying to determine if the cost of making the scissors is in line with the costs of other companies in the same industry. To begin this process, the company management has asked the accounting department to calculate prime cost and conversion cost. The following is a partial list of costs identified in the production of scissors at Allen Scissors Company during one month: Calculate the prime costs and conversion costs for Allen Scissors Company for the month