Question

Jensen Company reports the following: Direct materials used $345,000 Direct labor incurred 250,000 Factory overhead incurred 400,000 Operating expenses 175,000 Jensen Company's product costs are
a. $770,000
b. $825,000
c. $995,000
d. $920,000

Answer 1

Answer:

Jensen Company's product costs are c. $995,000

Explanation:

Product costs are costs that are incurred to create a product. Product costs include direct material, direct labor, and factory overhead.

In Jensen Company: Direct materials used $345,000 Direct labor incurred 250,000 Factory overhead incurred 400,000.

Jensen Company's product costs = direct material + direct labor + and factory overhead = $345,000 + $250,000 + $400,000 = $995,000