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The Peterson Company incurred the following costs in the month of May:Direct materials used $12,000Commissions paid to salespeople $5,000Direct labor paid $9,000Manufacturing plant utility costs $19,000Advertising costs $2,000The company's product costs total:A)$45,000 B)$47,000 C)$40,000 D)$42,000

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cecylya

Answer:

The company's product costs total C)$40,000

Explanation:

To get Total product costs,  we add Total direct materials costs, with  total direct labor costs and your total manufacturing overhead costs that you incurred during the period.

Direct materials used $12,000

Direct labor paid $9,000

Manufacturing plant utility costs $19,000

Total =  $40,000

Commissions paid to salespeople $5,000  are not related to manufacturing

Advertising costs $2,000 are not related to manufacturing