The Following Information Relates to Webster Inc -How Much Were Webster's Product Costs?
A) $141,897
B) $697,127

question 178

Multiple Choice

The following information relates to Webster Inc.: $\begin{array}{|l|r|}\hline \text { Advertising Costs } & \$ 10,270 \\\hline \text { Sales Salary } & 4,500 \\\hline \text { Sales Revenue } & 450,000 \\\hline \text { President's Salary } & 40,300 \\\hline \text { Office Rent } & 61,100 \\\hline \text { Manufacturing Equipment Depreciation } & 2,080 \\\hline \text { Indirect Materials } & 9,360 \\\hline \text { Indirect Labor } & 11,700 \\\hline \text { Factory Repair and Maintenance } & 910 \\\hline \text { Direct Materials } & 28,080 \\\hline \text { Direct Labor } & 35,100 \\\hline \text { Delivery Vehicle Depreciation } & 1,027 \\\hline \text { Administrative Salaries } & 24,700\\\hline \end{array}$
-How much were Webster's product costs?

• A) $141,897
• B) $697,127
• C) $229,127
• D) $87,230

---

Definitions:

Straight-Line Amortization

A method of allocating the cost of an intangible asset evenly over its useful life.

Fiscal Year

A fiscal year is a 12-month period used for accounting purposes and preparing financial statements, differing from a calendar year.

Bonds Payable

A liability account in a company's balance sheet representing the amount it owes on issued bonds that have not yet been repaid.

Interest Expense

The cost incurred by an entity for borrowed funds, which is considered a non-operating expense on the income statement.