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Calculate Total Product Cost

Frost Pane a manufacturing company of windows and doors shows the following information as of 12/31/07

Advertising expense -------------------------------- $7,200
Assemblers wages -------------------------------- $30,120
Depreciation of machinery --------------------------1,840
Factory utilities --------------------------------------11,120
Factory supervisors salaries --------------------- 38,280
Machinery repairs ----------------------------------- 4,520
Office supplies ------------------------------------- 22,760
Cost of glue & nails used in production -------- 480
Cost of oak & pine used in production --------- 69,800

* There was no begin or end inventories

Calculate the total product cost:

Solution Preview

Under full absorption costing, the cost of the goods sold would be the sum of the direct labor, direct materials and factory overhead. Because there is no beginning or ending inventory, the full amounts of these items are included in the cost ...

Solution Summary

This solution illustrates how to compute the total product costs for the year under absorption costing.