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Problem 1: Atlas Inc. manufactures television sets. Last month, direct materials (electronic components, etc.) costing $550,000 were put into production. Direct labor of $880,000 was incurred, manufacturing overhead equaled $495,000, and selling and administrative costs totaled $396,000. The company manufactured 8,400 television sets during the month. Assume that there were no beginning or ending work-in-process balances. What was the total product cost for last month?
a. $1,925,000b. $1,250,000c. $2,110,000d. $1,300,000
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