West Co'S Manufacturing Costs Are as Follows What Amount Should Be Considered Product Costs for External Reporting

question 99

Multiple Choice

West Co.'s manufacturing costs are as follows:
$\begin{array}{|l|r|}\hline \text { Direct materials and direct labour } & \$ 700,000 \\\hline \text { Other variable manufacturing costs } & 100,000 \\\hline \text { Depreciation of factory building and manufacturing equipment } & 80,000 \\\hline \text { Other fixed manufacturing overhead } & 18,000 \\\hline\end{array}$
What amount should be considered product costs for external reporting purposes if the company uses absorption costing?

• A) $700,000.
• B) $800,000.
• C) $880,000.
• D) $898,000.

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