Question

Country Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its costs from the past year include:

Depreciation on sales office	$ 9 comma 6009,600
Depreciation on factory equipment	16 comma 70016,700
Factory supervisor salary	50 comma 40050,400
Sales commissions	23 comma 40023,400
Lubricants used in factory equipment	3 comma 9003,900
Insurance costs for factory	21 comma 50021,500
Wages paid to maintenance workers	115 comma 600115,600
Fabric used to upholster furniture	10 comma 40010,400
Freightminus−in (on raw materials)	3 comma 2003,200
Costs of delivery to customers	9 comma 5009,500
Wages paid to assemblyminus−line workers	115 comma 300115,300
Lumber used to build product	82 comma 60082,600
Utilities in factory	54 comma 70054,700
Utilities in sales office	26 comma 90026,900

Product costs for Country Furniture Company totaled

A.

$474 comma 300474,300.

B.

$490 comma 500490,500.

C.

$449 comma 600449,600.

D.

$374 comma 900374,900.

Answer 1

A. $474,300

Product costs = Depreciation on factory equipment + Factory supervisor salary + Lubricants used in factory equipment + Insurance costs for factory + Wages paid to maintenance workers + Fabric used to upholster furniture + Freight-in + Wages paid to assembly-line workers + Lumber used to build product + Utilities in factory

Product costs = $16,700 + $50,400 + $3,900 + $21,500 + $115,600 + $10,400 + $3,200 + $115,300 + $82,600 + $54,700

Product costs = $474,300