Question

During 2018, Jon Manufacturing Company incurred $44,570 product development costs to create new products to sell. Manufa...

During 2018, Jon Manufacturing Company incurred $44,570 product development costs to create new products to sell. Manufacturing costs (direct materials, direct labor, and overhead) are expected to be $24 per unit. Packaging, shipping, and sales commissions are expected to be $24 per unit.. During 2018, Jon made 2,550 batteries and sold 2,120 of them.

What are the midstream costs?

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Answer #1

Mid stream cost

Major activities involved in the midstream sector include:

Transportation (pipeline, rail, barge, oil tanker, and/or truck).
Marketing of wholesale products

Mid stream cost=2550*24=61200

If packing costs are considered unavoidable

If avoidable it will be calculated on 2120

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