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Barry’s BarBQue incurred the following costs: $1,400 for ribs, 45 hours of labor to cook the ribs at $10 per hour, $50 for seasoning and sauce, $300 for signs to advertise the ribs, $150 to clean the grill after cooking the ribs, and $100 of administrative costs. How much are total product costs

Answer :

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Answer:

product cost  = $2,050

Step-by-step explanation:

in product cost only manufacturing costs are included .

cost for Advertising and administrative are not included in the product cost and that cost are called  period costs .

therefore product cost= cost of ribs + (45 hr labour at the rate of $10 per hour)+ seasoning and sauce cost + grill cleaning cost

product cost = $1,400 + (45*$10) + $50 + $150

product cost  = $2,050

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