19 East Co.'s manufacturing costs are as follows: Direct materials and direct labour $700,000 Other variable manufacturing costs 100,000 Depreciation of factory building and manufacturing equipment 80,000 Other fixed manufacturing overhead 18,000 What amount should be considered product costs for external reporting purposes if the company uses absorption costing? Select one: a. $898,000 b. $880,000 c. $800,000 d. $700,000
19 East Co.'s manufacturing costs are as follows: Direct materials and direct labour $700,000 Other variable manufacturing costs 100,000 Depreciation of factory building and manufacturing equipment 80,000 Other fixed manufacturing overhead 18,000 What amount should be considered product costs for external reporting purposes if the company uses absorption costing? Select one: a. $898,000 b. $880,000 c. $800,000 d. $700,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
19
East Co.'s
Direct materials and direct labour |
$700,000 |
Other variable manufacturing costs |
100,000 |
|
80,000 |
Other fixed manufacturing |
18,000 |
What amount should be considered product costs for external reporting purposes if the company uses absorption costing?
Select one:
a. $898,000
b. $880,000
c. $800,000
d. $700,000
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