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 $20906Sales and Marketing Expenses $23289Metal to make the exterior shell of the washing machines $50181 Electricity to run the machinery in the factory $18939Salary of the manager who oversees manufacturing $8204Salary of the Chief Operating Officer of the Company $16665Water bill for the building that houses corporate headquarters $2100

Answer 1

Answer:

The total product cost is $98,230

Explanation:

The product cost is that cost which is related to the manufacturing of a product

The computation of the total product cost is shown below:

= Direct labor + Metal to make the exterior shell of the washing machines + Electricity to run the machinery in the factory + Salary of the manager who oversees the manufacturing

= $20,906 + $50,181 + $18,939 + $8,204

= $98,230

So, this cost which are considered in the computation part is product cost and the rest cost are ignored.