The following information was obtained from Sizzler Company: • Advertising costs: $7 900
• Indirect labour: $9 000
• Direct labour: $31 000
• Indirect materials: $7 200
• Direct materials: $47 000
• Factory electricity and gas: $3 000
• Factory repair and maintenance: $700
• Factory cleaning costs: $1 900
• Manufacturing equipment depreciation: $1 600
• Delivery vehicle depreciation: $790
• Administrative wages and salaries: $19 000
How much were Sizzler's inventoriable product costs?
A)$101 400
B)$129 090
C)$99 500
D)$102 190

Question

Quizplus · Accepted Answer

Inventoriable product costs include direct materials, direct labour, and manufacturing overhead. Manufacturing overhead includes indirect labour, indirect materials, factory electricity and gas, factory repair and maintenance, factory cleaning costs, and manufacturing equipment depreciation.Direct materials: $47,000Direct labour: $31,000Manufacturing overhead: $9,000 + $7,200 + $3,000 + $700 + $1,900 + $1,600 = $23,400Total inventoriable product costs: $47,000 + $31,000 + $23,400 = $101,400

The Following Information Was Obtained from Sizzler Company: • Advertising