The Alton Company produces metal belts. During the current month, the company incurred the following product costs: Raw materials $100,000
Direct labor $75,000
Electricity used in the Factory $25,000
Factory foreperson salary $3,750
Maintenance of factory machinery $2,000
Alton Company's total product costs totaled:

Question

Quizplus · Accepted Answer

The total product costs include all of the costs incurred in the production process, which in this case includes raw materials, direct labor, and all other costs related to operating the factory. These additional costs include electricity used in the factory, the salary paid to the factory foreperson, and maintenance of the factory machinery. Therefore, the total product costs for the Alton Company during the current month are $100,000 (raw materials) + $75,000 (direct labor) + $25,000 (electricity) + $3,750 (factory foreperson salary) + $2,000 (maintenance) = $205,750.

The Alton Company Produces Metal Belts