West Co.’s manufacturing costs for the period just ended were as follows:

Direct materials and direct labor $600,000
Other variable manufacturing costs 100,000
Depreciation of factory building 50,000
Depreciation of factory equipment 40,000
Depreciation of warehouse used to store finished inventory 28,000
What amount should be considered product cost for external reporting purposes?
A. $700,000
B. $790,000
C. $818,000
D. $690,000

Answer rating: 100% (QA)

B 790000 Direct materials and direct labor 600000 Other variable manufacturing costs 100000 De... View the full answer