Question

Total and Unit Product Cost Martinez Manufacturing Inc. showed the following costs for last month: Direct materials $8,000 Direct labor 3,100 Manufacturing overhead 2,500 Selling expense 7,000 Last month, 5,000 units were produced and sold. Required: 1. Classify each of the costs as product cost or period cost. Direct materials Direct labor Manufacturing overhead Selling expense 2. What is the total product cost for last month

Answer 1

See below

Step-by-step explanation:

1. Classify each of the products as period or product cost .

Direct materials - Product cost

Direct labor - Product cost

Manufacturing overhead - Product cost

Selling expense - Period cost

2. The total product cost for last month is calculated as;

= Direct materials + Direct labor + Manufacturing overhead

= $8,000 + $3,100 + $2,500

= $13,600

Therefore, total product cost for last month is $13,600