Noteworthy, Inc., produces and sells small electronic keyboards. Assume that you

Question

Noteworthy, Inc., produces and sells small electronic keyboards. Assume that you have the following information about Noteworthy's costs for the most recent month.


Depreciation on factory equipment $ 800
Depreciation on CEO's company car 100
Speakers used in the keyboard 1,100
Production supervisor's salary 2,200
Glue and screws used in the keyboards 370
Wages of persons who install the speakers 2,800
Cost to run an ad on local radio stations 600
Utilities for the factory 1,200
Personnel manager's salary 2,500
Wages of person who attaches legs to keyboards 1,950


1. Calculate the total product cost for Noteworthy. (Omit the "$" sign in your response.)

Total product cost:$________

Explanation / Answer

Total products cost are cost that are required to make the product.

Direct materials
Glue and screws used in the keyboards 370
Speakers used in the keyboard 1,100

Direct labours
Wages of person who attaches legs to keyboards 1,950
Wages of persons who install the speakers 2,800

Manufacturing overheads
Depreciation on factory equipment $ 800
Production supervisor's salary 2,200
Utilities for the factory 1,200

Thus, the total product cost is the sum of the above, which is $10420.

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