Question

# The Darwin Company reports the following information: Sales \$76,500 Direct materials used 7,300 Depreciation on factory...

The Darwin Company reports the following information: Sales \$76,500 Direct materials used 7,300 Depreciation on factory equipment 4,700 Indirect labor 5,900 Direct labor 10,500 Factory rent 4,200 Factory utilities 1,200 Sales salaries expense 15,600 Office salaries expense 8,900 Indirect materials 1,200 Product costs are

a.\$35,000

b.\$29,200

c.\$30,300

d.\$24,500

The Correct Answer is Option a. \$35,000

Explanation :-

Product Costs = Direct materials used + Depreciation on factory equipment + Indirect labor + Direct labor + Factory rent + Factory utilities + Indirect materials

Where,

Direct materials used = \$7,300

Depreciation on factory equipment = \$4,700

Indirect labor = \$5,900

Direct labor = \$10,500

Factory rent = \$4,200

Factory utilities = \$1,200

Indirect materials = \$1,200

Product Costs = \$7,300 + \$4,700 + \$5,900 + \$10,500 + \$ 4,200 + \$ 1,200 + \$1200

Product Costs = \$35,000

So the correct answer is Option a - \$35,000

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