Question

A partial listing of costs incurred at Archut Corporation during September appears below: Direct materials $ 113,000 Utilities, factory $ 5,000 Administrative salaries $ 81,000 Indirect labor $ 25,000 Sales commissions $ 48,000 Depreciation of production equipment $ 20,000 Depreciation of administrative equipment $ 30,000 Direct labor $ 129,000 Advertising $ 135,000 The total of the product costs listed above for September is: Multiple Choice

Answer 1

Answer:

Explanation:

Calculation for what The total of the product costs listed above for September is:

Direct materials $113,000

Add Utilities, factory $5,000

Add Indirect labor $25,000

Add Depreciation of production equipment $20,000

Add Direct labor $129,000

Total product costs $292,000

Therefore The total of the product costs listed above for September is: $292,000

Answer 2

Based on the costs incurred for the month, we can calculate that the total product cost is $292,000.

What costs are product costs?

These include the direct labor costs, direct materials, and factory overhead costs.

Total product costs

= Direct labor + Direct materials + Factory overhead

= 129,000 + 113,000 + (5,000 + 25,000 + 20,000)

= 129,000 + 113,000 + 50,000

= $292,000

In conclusion, this is $292,000.

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