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Sun Co.'s 2014 manufacturing costs were as follows: Direct materials $500,000 Direct labor 600,000 Depreciation of manufacturing equipment 80,000 Depreciation of factory building 50,000 Janitor's

Sun Co.'s 2014 manufacturing costs were as follows:

Direct materials $500,000
Direct labor 600,000
Depreciation of manufacturing equipment 80,000
Depreciation of factory building 50,000
Janitor's wages for cleaning factory premises 25,000
Depreciation on Sales Person's Car 5,000
Salary of the CEO 500,000

How much of these costs should be treated as a product cost and inventoried (as opposed to being expensed as a period cost)?

Question 5 options:

A)

$1,290,000

B)

$1,100,000

C)

$1,255,000

D)

$500,000

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