A product cost is composed of the following: Direct materials Direct labor $15 $3 Manufacturing overhead $7 The product sells for $90 and a 5% commission is paid to a salesperson for every unit sold. Management accountants also estimate that storage cost per unit averages $0.50 per unit. What is the full cost of the product?

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
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Chapter5: Process Costing
Section: Chapter Questions
Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...
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A product cost is composed of the following:

A product cost is composed of the following:
Direct materials
Direct labor
$15
$3
Manufacturing overhead $7
The product sells for $90 and a 5% commission is paid to a
salesperson for every unit sold. Management accountants also
estimate that storage cost per unit averages $0.50 per unit.
What is the full cost of the product?
Transcribed Image Text:A product cost is composed of the following: Direct materials Direct labor $15 $3 Manufacturing overhead $7 The product sells for $90 and a 5% commission is paid to a salesperson for every unit sold. Management accountants also estimate that storage cost per unit averages $0.50 per unit. What is the full cost of the product?
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