Question

Direct materials $ 69,000 Direct labor $ 35,000 Variable manufacturing overhead $ 15,000 Fixed manufacturing overhead 28,000 Total manufacturing overhead $ 43,000 Variable selling expense $ 12,000 Fixed selling expense 18,000 Total selling expense $ 30,000 Variable administrative expense $ 4,000 Fixed administrative expense 25,000 Total administrative expense $ 29,000 Required: 1. With respect to cost classifications for preparing financial statements: a. What is the total product cost

Answer 1

Answer: $147,000

Explanation:

Based on the information given in the question, the total product cost is calculated below:

Total product cost will be:

Direct materials: 69,000

Add: direct labor: 35,000

Add: total manufacturing overhead: 43,000

Total product cost:

= 69000 + 35000 + 43000

= $147,000