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?

Answer 1

Answer:

$1,925,000

Explanation:

Given that,

Direct Material = $550,000

Direct Labor = $880,000

Over Head = $495,000

selling and administrative costs = $396,000

Television sets manufactured during the month = 8,400

Total product cost for last month:

= Direct Material + Direct Labor + Over Head

= $550,000 + $880,000 + $495,000

= $1,925,000