Posted: May 9th, 2017

Alton Company produces metal belts. During the current month, the company incurred the following product costs:

Alton Company produces metal belts. During the current month, the company incurred the following product costs:

Raw materials $100,000
Direct labor $75,000
Electricity used in the Factory $25,000
Factory foreperson salary $3,750
Maintenance of factory machinery $2,000

Alton Company’s total product costs:

A. $175,000.

B. $30,750.

C. $205,750.

D. $28,750.
Particulars Amount
Raw materials $ 1,00,000
Direct labor $ 75,000
Electricity used in the Factory $ 25,000
Factory foreperson salary $ 3,750
Maintenance of factory machinery $ 2,000
Total product cost $ 2,05,750