Ios corporation reports costs for the year as follows: direct materials used $ 385 comma 000 wages to line workers 165 comma 000 office rent 67 comma 000 indirect materials used 330 comma 000 how much is the total product costs for the year? a. $ 880 comma 000 b. $ 330 comma 000 c. $ 550 comma 000 d. $ 947 comma 000

The answer is A. 880,000.

Explanation:

The product cost for the year = sum of Ios Corporation’s report cost for the following individual categories for the year = cost of Direct Material used + cost of Wages to Line workers + cost of Indirect Materials used.

Note that the cost of office rent will not be part of the product cost; therefore, the total product cost for the year = $385,000 + $165,000 + $330,000 = $880,000.

The total product cost = $880,000.

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