Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes. Shown below are some of the costs incurred by Vignana for last year:
| Cost of clay used in production | $ | 74,000 |
| Wages paid to the workers who paint the figurines | $ | 98,000 |
| Wages paid to the sales manager's secretary | $ | 30,000 |
| Cost of junk mail advertising | $ | 47,000 |
What is the total of the product costs above?
Multiple Choice
Explanation
Product costs include the cost of clay used in production and the wages paid to the workers who paint the figurines. $74,000 + $98,000 = $172,000
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