Crystal Soda produces lemon-lime soda. It incurred the following costs during the period (in thousands) : Lemon Syrup $16,000 Delivery truck driver's wages $285 Freight-in for raw materials $1,300 Plant utilities $1,250 Assembly line wages $7,900 Plant janitor's wages $1,000 Customer hotline $220 Sales commissions $450 Bottles $1,490 Lime flavoring $1,020 What is the total amount of product costs for Crystal Soda for the period?

Question

Business

Jarvis

3 December, 06:39

Crystal Soda produces lemon-lime soda. It incurred the following costs during the period (in thousands) : Lemon Syrup $16,000 Delivery truck driver's wages $285 Freight-in for raw materials $1,300 Plant utilities $1,250 Assembly line wages $7,900 Plant janitor's wages $1,000 Customer hotline $220 Sales commissions $450 Bottles $1,490 Lime flavoring $1,020 What is the total amount of product costs for Crystal Soda for the period?

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Libby Estrada · Answer 1

The total amount of product costs for Crystal Soda for the period is $29,960 (in thousands).

Explanation:

Product costs refer to the costs incurred by a business in order to create the product of the company or providing a service to the customers.

Product costs include direct materials costs, direct labor costs and manufacturing overhead costs

For Crystal Soda,

Product costs = Lemon Syrup + Freight-in for raw materials + Plant utilities + Assembly line wages + Plant janitor's wages + Bottles + Lime flavoring = $16,000 + $1,300 + $1,250 + $7,900 + $1,000 + $1,490 + $1,020 = $29,960