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:

Question

Quizplus · Accepted Answer

Total product costs include all direct and indirect costs incurred in producing a product. In this case, the total product costs are the sum of raw materials, direct labor, electricity used in the factory, factory foreperson salary, and maintenance of factory machinery. Therefore, the total product costs for Alton Company in the current month are $100,000 + $75,000 + $25,000 + $3,750 + $2,000 = $205,750. Option C is the correct answer.

Alton Company Produces Metal Belts