We know the following for Train Company: Direct Materials: $400,000 Rent on Corporate Sales Office: $10,000 Direct Labor: $250,000 $100,000 Indirect Materials: $25,000 Depreciation on Factory Equipment Rent on Factory: Commissions for Selling Team: $50,000 $45,000

Solution:-

Calculation of the  product costs as follows:-

Introduction:-

Product costs include All direct material, direct labor, and manufacturing overhead relating to products but non- manufacturing costs are treated as period costs.