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During its first year of operations, Beta Company paid $16,000 for direct material and $17,000 in...

During its first year of operations, Beta Company paid $16,000 for direct material and $17,000 in wages for production workers. Lease payments and utilities on the production facilities amounted to $7,000. General, selling, and administrative expenses were $6,000. The company produced 5,000 units and sold 4,000 units at a price of $15.00 a unit. What is the total product cost?

  • A. $23,000

  • B. $33,000

  • C. $40,000

  • D. $46,000

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Answer #1
Total Product Cost
Direct material costs                16,000
Add: wages for production workers                17,000
Add: Lease payments and utilities on the production facilities                  7,000
Total Product Cost                40,000
The Total Product Cost will be $40,000
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