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28 September, 21:56

Benson Corporation reported the following costs for the period: Materials used to manufacture product $120,000 Wages for assembly line workers $62,800 Property taxes for factory $14,000 Rent & utilities for administrative office $16,000 Salary for factory manager $8,400 CEO's salary $12,000 Depreciation on delivery equipment $11,200 What is the total amount of Benson's product costs for the period?

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  1. 28 September, 22:59
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    Total amount of Benson's product costs - $ 205,200

    Explanation:

    Computation of Benson's product cost

    Materials Used $ 120,000

    Wages for assembly line workers $ 62,800

    Property taxes for factory $ 14,000

    Salary for factory manager $ 8,400

    Total items considered for product costs $ 205,200

    The other data provided in the question i. e Rent and Utilities for administrative offices, CEO' s salary and depreciation on delivery equipment are of the nature of selling and administrative expenses, and thus is not included in product costs.
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