The accounting records of Dixon Company revealed the following costs: direct materials used, $280,000; direct labor, $480,000; manufacturing overhead, $384,000; and selling and administrative expenses, $250,000. Dixon's product costs total:

$1,144,000

Explanation:

The product cost of an item is the total cost incurred in producing that item. This includes cost elements such as direct materials, direct labor and manufacturing overheads.

Hence given that Dixon Company incurred the following costs: direct materials used, $280,000; direct labor, $480,000; manufacturing overhead, $384,000; and selling and administrative expenses, $250,000,

Product cost

= $280,000 + $480,000 + $384,000

= $1,144,000

Dixon's product costs total is $1,144,000

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