PE 18-3B Prime and conversion costs

Identify the following costs as a prime cost (P), conversion cost (C), or both (B) for a magazine publisher.

a. Paper used for the magazine
b. Wages of printing machine employees
c. Glue used to bind magazine
d. Maintenance on printing machines

Answer:
a.    P
b.    B
c.    C (or P if significant)
d.    C