Question

Concam Inc. manufactures television sets. Last month direct materials (electronic components, etc.) costing $500,000 were put into production. Direct labor of $800,000 was incurred, overhead equaled $450,000, and selling and administrative costs totaled $360,000. The company manufactured 8,000 television sets during the month. Assume that there were no beginning or ending work in process balances. The total product costs for last month were:

Answer 1

Answer: $1,750,000

Explanation:

Given that,

Direct materials = $500,000

Direct labor = $800,000

Overhead = $450,000

Selling and administrative costs = $360,000

Television manufactured = 8,000

Total Product Cost = Direct material + Direct labor + Direct overhead

                               = $500,000 + $800,000 + $450,000

                               = $1,750,000