Use the information below for Jensen Company to answer the questions that follow.

$$\begin{array} { l r }
\text { Direct materials used } & \$ 345,000 \
\text { Direct labor incurred } & 250,000 \
\text { Factory overhead incurred } & 400,000 \
\text { Operating expenses } & 175,000
\end{array}$$
-Jensen Company's product costs are
A) $995,000
B) $920,000
C) $825,000
D) $770,000

Question

Use the information below for Jensen Company to answer the questions that follow.
​
 $$\begin{array} { l r } 
\text { Direct materials used } & \$ 345,000 \
\text { Direct labor incurred } & 250,000 \
\text { Factory overhead incurred } & 400,000 \
\text { Operating expenses } & 175,000
\end{array}$$
-Jensen Company's product costs are
A) $995,000
B) $920,000
C) $825,000
D) $770,000

Quizplus · Accepted Answer

Product costs include direct materials, direct labor, and factory overhead. So, Jensen Company's product costs are $345,000 + $250,000 + $400,000 = $995,000.

Use the Information Below for Jensen Company to Answer the Questions