Question

Benson Corporation reported the following costs for the​ period: Materials used to manufacture product ​$120,000 Wages for assembly line workers ​$62,800 Property taxes for factory ​$14,000 Rent​ & utilities for administrative office ​$16,000 Salary for factory manager ​$8,400 ​CEO's salary ​$12,000 Depreciation on delivery equipment ​$11,200 What is the total amount of​ Benson's product costs for the​ period?

Answer 1

Answer:

Total amount of Benson's product costs - $ 205,200

Explanation:

Computation of Benson's product cost

Materials Used                                                       $ 120,000

Wages for assembly line workers                        $   62,800

Property taxes for factory                                     $    14,000

Salary for factory manager                                   $      8,400

Total items considered for product costs           $ 205,200

The other data provided in the question i.e Rent and Utilities for administrative offices, CEO' s salary and depreciation on delivery equipment are of the nature of selling and administrative expenses, and thus is not included in product costs.