Question

Wooden Shed Company manufactures custom wooden sheds. Some of its costs from the past year​ include:

Wages paid to maintenance workers
$ 60 comma 300
Lumber used to build the product
$ 80 comma 600
Wages paid to assemblyminusline workers
$ 100 comma 100
Shingles used for the roof
$ 15 comma 500
Sales commissions
$ 7 comma 900
Insurance costs for factory
$ 21 comma 100
Freightminusin ​(on raw​ materials)
$ 3 comma 700
Utilities in factory
$ 12 comma 300
Factory supervisor salary
$ 60 comma 900
Depreciation on factory equipment
$ 18 comma 000
Utilities in sales office
$ 26 comma 100
Costs of delivery to customers
$ 8 comma 400
Depreciation on sales office
$ 1 comma 900
Lubricants used in factory equipment
$ 700
Product costs for Wooden Shed Company totaled

Answer 1

$373,200

Step-by-step explanation:

Product cost is derived through the compilation and addition of the cost of direct labor , direct materials and factory overhead involved in the production of an item

Direct cost

Lumber - 80,600

Assembly line - 100,100

Roof - 15,500

Freight raw materials - 3,700

Total - 199900

Factory overhead

Maintenance workers - 60300

Insurance for factory - 21,100

Utilities in factory - 12,300

Factory Supervisor - 60,900

Depreciation of factory machine - 18,000

Lubricant in factory equipment - 700

Total -173,300

Total product cost - 373200