Question
A product cost is composed of the following: Direct materials $15.00 Direct labor $3.00 Manufacturing overhead $7.00 The product sells for $90.00 and a 5%
A product cost is composed of the following:
| Direct materials | $15.00 | |
| Direct labor | $3.00 | |
| Manufacturing overhead | $7.00 |
The product sells for $90.00 and a 5% commission is paid to a salesperson for every unit sold. Management accountants also estimate that storage cost per unit averages $0.50 per unit. What is the full cost of the product?
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Accounting Texts and Cases
Authors: Robert Anthony, David Hawkins, Kenneth Merchant
13th edition
1259097129, 978-0073379593, 007337959X, 978-1259097126
