The Peterson Company incurred the following costs in the month of May:Direct materials used $12,000Commissions paid to salespeople $5,000Direct labor paid $9,000Manufacturing plant utility costs $19,000Advertising costs $2,000The company's product costs total:A) $45,000 B) $47,000 C) $40,000 D) $42,000

Question

Bridges

Business

16 October, 04:27

The Peterson Company incurred the following costs in the month of May:Direct materials used $12,000Commissions paid to salespeople $5,000Direct labor paid $9,000Manufacturing plant utility costs $19,000Advertising costs $2,000The company's product costs total:A) $45,000 B) $47,000 C) $40,000 D) $42,000

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Answers (1)

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Blaine Lee · Answer 1

The company's product costs total C) $40,000

Explanation:

To get Total product costs, we add Total direct materials costs, with total direct labor costs and your total manufacturing overhead costs that you incurred during the period.

Direct materials used $12,000

Direct labor paid $9,000

Manufacturing plant utility costs $19,000

Total = $40,000

Commissions paid to salespeople $5,000 are not related to manufacturing

Advertising costs $2,000 are not related to manufacturing