The accounting records of Georgia 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. Georgia's product costs total:

Question

Quizplus · Accepted Answer

Product costs include direct materials, direct labor, and manufacturing overhead. Therefore, Georgia Company's product costs total $250,000 + $425,000 + $375,000 = $1,050,000. Selling and administrative expenses are considered period costs and are not included in product costs.

The Accounting Records of Georgia Company Revealed the Following Costs