Question

The following information relates to​ Myer, Inc.: Advertising Costs $ 13 comma 600 Sales Salary 18 comma 800 Sales Revenue 640 comma 000 ​President's Salary 320 comma 000 Office Rent 78 comma 000 Manufacturing Equipment Depreciation 1 comma 800 Indirect Materials Used 8 comma 800 Indirect Labor 15 comma 000 Factory Repair and Maintenance 800 Direct Materials Used 27 comma 500 Direct Labor 36 comma 000 Delivery Vehicle Depreciation 1 comma 150 Administrative Salaries 22 comma 500 How much were​ Myer's product​ costs?

Answer 1

Answer:

$89,900

Explanation:

The computation of the product cost is shown below:

= Manufacturing Equipment Depreciation + Indirect Materials Used + Indirect Labor + Factory Repair and Maintenance + Direct Materials Used + Direct Labor

= $1,800 + $8,800 + $15,000 + $800 + $27,500 + $36,000

= $89,900

It is a mix of direct labor cost, direct material cost and the manufacturing overhead cost