Information from the records of the Abel Corporation for July 2018 was as follows:
Sales $1,230,000
Selling and administrative expenses 210,000
Direct materials used 264,000
Direct labor 300,000
Factory overhead * 405,000
*variable overhead is $205,000, fixed overhead is $200,000
Inventories
July 1, 2018 July 31, 2018
Direct materials $36,000 $42,000
Work in process 75,000 84,000
Finished goods 69,000 57,000
The total product cost is:_______.
a. $969,000
b. $1,179,000
c. $764,000
d. $615,000

Respuesta :

Answer:

a. $969,000

Explanation:

Calculation for what The total product cost is

TOTAL PRODUCT COST

Direct Material Used $264,000

Direct Labor $300,000

Factory Overhead $405,000

Total Product Cost $ 969,000

($264,000+$300,000+$405,000)

Therefore The total product cost is $ 969,000