Question

Smith Company manufactures washing machines in their own facility. They sell them to stores like Best Buy and Lowes for ultimate sale to the consumer. Here are some costs for Smith Company. Calculate total PRODUCT costs for Smith Company. Direct Labor $22,468 Sales and Marketing Expenses $21,574 Metal to make the exterior shell of $74,167 the washing machines Electricity to run the machinery in $10,393 the factory Salary of the manager who $8,203 oversees manufacturing Salary of the Chief Operating $16,037 Officer of the Company Water bill for the building that $2,771 houses corporate headquarters

Answer 1

Product costs are costs directly involved to produce a product. it will be direct material, direct labor and manufacturing overhead.

Direct labor	$       22,468
Metal to make exterior shell of the washing machine	$       74,167
Electricity to run the machinery in the factory	$       10,393
Salary of the manager who oversees the manufacturing	$         8,203
Total product cost	$    115,231

You can reach me over comment box if you have any doubts. Please rate this answer