The following are Acme's production costs for the quarter ended September 30^th: $\begin{array}{llr} \text {Direct materials } &\$100,000\\ \text {Direct labor } &\$190,000\\ \text { Factory overhead} &\$50,000\end{array}$
What amount of costs should be traced to specific products in the process?

Question

The following are Acme's production costs for the quarter ended September 30^th:

\begin{array}{llr} \text {Direct materials } &\$100,000\\ \text {Direct labor } &\$190,000\\ \text { Factory overhead} &\$50,000\end{array}

What amount of costs should be traced to specific products in the process?

Quizplus · Accepted Answer

The costs that should be traced to specific products are direct materials, direct labor, and manufacturing overhead. Based on the information provided, these costs add up to $290,000 ($100,000 direct materials + $60,000 direct labor +$130,000 manufacturing overhead). Therefore, the best choice is D.