Which should not be included in direct materials costs

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Problem 1: A company's prime costs total $3,000,000 and its conversion costs total $7,000,000. If direct materials are $1,000,000 and factory overhead is $5,000,000, then direct labor is:

Problem 2: Which of the following should not be included in direct materials costs?

Multiple Choice

Option 1: Delivery charges on shipments to customers.

Option 2: Materials handling costs.

Option 3: Incoming freight charges.

Option 4: Materials storage costs.

Option 5: Invoice costs of direct materials.

Reference no: EM132954691

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