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

Question

Business

Brielle Short

31 July, 00:33

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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Answers (2)

Know the Answer?

Billy · Answer 1

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

Kassandra Griffin · Answer 2

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