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The following information has been taken from the perpetual inventory system of Imperial Mfg.Co.for the month ended September 30:

-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;and
Maintenance of factory machinery $2,000.
Alton Company's total product costs:

Question

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The following information has been taken from the perpetual inventory system of Imperial Mfg.Co.for the month ended September 30:
  
-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;and
Maintenance of factory machinery $2,000.
Alton Company's total product costs:

Quizplus · Accepted Answer

Total product costs include all costs related to manufacturing: 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) = $205,750.

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