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4 October, 12:48

Use the information below for Jensen Company to answer the question that follow. 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.$825,000 b.$995,000 c.$920,000 d.$770,000

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  1. 4 October, 14:04
    0
    b.$995,000

    Explanation:

    Jensen Company

    Direct materials used $345,000

    Direct labor incurred 250,000

    Factory overhead incurred 400,000

    Product cost $995,000

    Therefore Jensen Company's product costs is $995,000

    Direct materials used $345,000 + Direct labor incurred 250,000 + Factory overhead incurred 400,000 = $995,000
  2. 4 October, 14:25
    0
    Jensen Company's product costs are b.$995,000

    Explanation:

    Product Cost includes all Manufacturing Costs. Non-Manufacturing Costs are treated as expenses during the current period

    Calculation of Jensen Company's product costs

    Direct materials 345,000

    Direct labor incurred 250,000

    Factory overhead incurred 400,000

    Total 995,000
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