What is the value of the total conversion cost

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A perfume manufacturing company has created a new fragrance and it is studying the production and marketing of this innovation on a large scale. The company will rent a factory for $14,000 per month for production. This manufacturer has already taken an advanced course in perfume composition to help him create fragrances. The course cost was $15,000. The company will pay a bill for renting and insuring the production equipment at a monthly cost of $8,000. The company has estimated the following costs: direct materials per unit will be $25 and direct labor will be $20 per unit. Time to be spent promoting the perfume will cost $12,400 per month. In addition, $20,000 of the salary of the existing sales manager will be allocated to the fragrance.

The company is expected to produce 14,000 bottles of the perfume

Question 1: What is the value of the total conversion cost?

Question 2: What is the value of the total cost of production?

Question 3: What is the value of the total period costs?

Reference no: EM132632509

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