Question

The following information relates to​ Myer, Inc.: Advertising Costs $ 13 comma 600 Sales Salary 18 comma 800 Sales Revenue 640 comma 000 ​President's Salary 320 comma 000 Office Rent 78 comma 000 Manufacturing Equipment Depreciation 1 comma 800 Indirect Materials Used 8 comma 800 Indirect Labor 15 comma 000 Factory Repair and Maintenance 800 Direct Materials Used 27 comma 500 Direct Labor 36 comma 000 Delivery Vehicle Depreciation 1 comma 150 Administrative Salaries 22 comma 500 How much were​ Myer's product​ costs?

Answer 1

Myer, Inc.'s product costs amount to $90,900, calculated by adding Direct Materials, Direct Labor, and various indirect costs known as Manufacturing Overhead.

Step-by-step explanation:

To calculate the product costs for Myer, Inc., we need to add together the Direct Materials, Direct Labor, and Manufacturing Overhead costs. Manufacturing Overhead includes all the indirect costs associated with production, such as Indirect Materials, Indirect Labor, Manufacturing Equipment Depreciation, and Factory Repair and Maintenance.

• Direct Materials Used: $27,500
• Direct Labor: $36,000
• Indirect Materials Used: $8,800
• Indirect Labor: $15,000
• Manufacturing Equipment Depreciation: $1,800
• Factory Repair and Maintenance: $800

Adding these figures together:

$27,500 (Direct Materials) + $36,000 (Direct Labor) + $8,800 (Indirect Materials) + $15,000 (Indirect Labor) + $1,800 (Manufacturing Equipment Depreciation) + $800 (Factory Repair and Maintenance) = $90,900

Therefore, Myer's product costs amounted to $90,900.

Answer 2

$89,900

Step-by-step explanation:

The computation of the product cost is shown below:

= Manufacturing Equipment Depreciation + Indirect Materials Used + Indirect Labor + Factory Repair and Maintenance + Direct Materials Used + Direct Labor

= $1,800 + $8,800 + $15,000 + $800 + $27,500 + $36,000

= $89,900

It is a mix of direct labor cost, direct material cost and the manufacturing overhead cost