The accounting records of Dixon Company revealed the following costs: direct materials used, $250,000; direct labor, $425,000; manufacturing overhead, $375,000; and selling and administrative expenses, $220,000. Dixon's product costs total:
A) $1,050,000.
B) $830,000.
C) $895,000.
D) $1,270,000.
E) None of the answers is correct.

Question

Quizplus · Accepted Answer

Product costs include direct materials, direct labor, and manufacturing overhead. Therefore, Dixon's product costs total $250,000 + $425,000 + $375,000 = $1,050,000.

The Accounting Records of Dixon Company Revealed the Following Costs