Question

For financial reporting purposes, what is the total amount of product costs incurred to make 5,000 units

Answer 1

Answer: $80,500

Explanation:

Product Costs = Fixed Costs + Variable costs

Variable product cost = 5,000 units * (Direct materials + direct labor + Variable manufacturing overhead )

= 5,000 * (5.30 + 4.4 + 2.00)

= $58,500

Product Costs = 22,000 + 58,500

= $80,500