The following are Margin Co.'s production costs for December: What amount of costs should be traced to specific products in the production process? (CPA adapted)
$$\begin{array} { | l | r | }
\hline \text { Direct Material } & \$ 100,000 \
\hline \text { Direct Labor } & 90,000 \
\hline \text { Factory Overhead } & 4,000 \
\hline
\end{array}$$

Question

The following are Margin Co.'s production costs for December: What amount of costs should be traced to specific products in the production process? (CPA adapted)
$$\begin{array} { | l | r | } 
\hline \text { Direct Material } & \$ 100,000 \
\hline \text { Direct Labor } & 90,000 \
\hline \text { Factory Overhead } & 4,000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

Direct materials, direct labor, and variable manufacturing overhead are all costs that can be traced to specific products in the production process, totaling $190,000. Fixed manufacturing overhead is a period cost and should not be included in product costs.

The Following Are Margin Co A) $194,000