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17 October, 11:27

Jensen Company reports the following: Direct materials used $345,000 Direct labor incurred 250,000 Factory overhead incurred 400,000 Operating expenses 175,000 Jensen Company's product costs are

a. $770,000

b. $825,000

c. $995,000

d. $920,000

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  1. 17 October, 14:35
    0
    Jensen Company's product costs are c. $995,000

    Explanation:

    Product costs are costs that are incurred to create a product. Product costs include direct material, direct labor, and factory overhead.

    In Jensen Company: Direct materials used $345,000 Direct labor incurred 250,000 Factory overhead incurred 400,000.

    Jensen Company's product costs = direct material + direct labor + and factory overhead = $345,000 + $250,000 + $400,000 = $995,000
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