The Casual Furniture Company manufactures outdoor furniture and incurred the following costs during the month of January: Timber Paint Glue Wages-assembly personnel $25 000 $5 000 $500 $20 000 Wages-factory supervisor $3 500 Factory cleaner's wages $2.000 Sales commissions $10 000 Administrative staff salaries $4.000 Depreciation-factory equipment $3.000 Depreciation-sales office equipment $1.000 Utilities, insurance-factory $6.000 Utilities, insurance-sales office $2.000 Advertising $8.000 Total costs $90 000 The product costs are: a. $90 000 O b. $65.000 O c. $63 000 Od. $83 000
The Casual Furniture Company manufactures outdoor furniture and incurred the following costs during the month of January: Timber Paint Glue Wages-assembly personnel $25 000 $5 000 $500 $20 000 Wages-factory supervisor $3 500 Factory cleaner's wages $2.000 Sales commissions $10 000 Administrative staff salaries $4.000 Depreciation-factory equipment $3.000 Depreciation-sales office equipment $1.000 Utilities, insurance-factory $6.000 Utilities, insurance-sales office $2.000 Advertising $8.000 Total costs $90 000 The product costs are: a. $90 000 O b. $65.000 O c. $63 000 Od. $83 000
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter2: Job Order Costing
Section: Chapter Questions
Problem 14E: The following events took place for Rushmore Biking Inc. during February, the first month of...
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Transcribed Image Text:The Casual Furniture Company manufactures outdoor furniture and incurred the following costs during the month of January:
Timber
Paint
Glue
Wages-assembly personnel
$25 000
$5 000
$500
$20 000
Wages-factory supervisor
$3 500
Factory cleaner's wages
$2.000
Sales commissions
$10 000
Administrative staff salaries
$4.000
Depreciation-factory equipment
$3.000
Depreciation-sales office equipment $1.000
Utilities, insurance-factory
$6.000
Utilities, insurance-sales office
$2.000
Advertising
$8.000
Total costs
$90 000
The product costs are:
a. $90 000
O b. $65.000
O c. $63 000
Od. $83 000
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