Question

Atlas Inc. manufactures television sets. Last month, direct materials (electronic components, etc.) costing $550,000 were put into production. Direct labor of $880,000 was incurred, manufacturing overhead equaled $495,000, and selling and administrative costs totaled $396,000. The company manufactured 8,400 television sets during the month. Assume that there were no beginning or ending work in process balances. What was the total product cost for last month? a.$2,110,000 b.$1,300,000 c.$1,925,000 d.$1,250,000

Answer 1

Answer:

The correct answer is C: $1,925,000

Explanation:

Giving the following information:

Last month, direct materials (electronic components, etc.) costing $550,000 were put into production. Direct labor of $880,000 was incurred, manufacturing overhead equaled $495,000.

Total product cost= direct material + direct labor + MOH= 550000 + 880000 + 495000= $1,925,000