Question

The following information was obtained from MCB​ Manufacturing, Inc.:Advertising Costs $9,900Indirect Labor 53,000CEO's Salary 620,000Direct Labor 40,000Indirect Materials Used 7,500Direct Materials Used 65,000Factory Utilities 760Factory Janitorial Costs 1,200Manufacturing Equipment Depreciation 3,100Delivery Vehicle Depreciation 1,000Administrative Wages and Salaries 24,000Calculate MCB Manufacturing's total product costs.

Answer 1

Answer:

The MCB Manufacturing's total product costs is $170,560

Explanation:

The computation of the total product cost is shown below:

Total product cost = Indirect Labor + Direct Labor + Indirect Materials Used + Direct Materials Used  + Factory Utilities + Factory Janitorial Costs + Manufacturing Equipment Depreciation

= $53,000 + $40,000 + $7,500 + $65,000 + $760 + $1,200 + $3,100

= $170,560

Thus, the product cost is that cost which includes all types of direct and the indirect costs which are used to ready the product.