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West Co.'s manufacturing costs are as follows: Direct materials and direct labour Other variable...

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Accounting

West Co.'s manufacturing costs are as follows:
Direct materials and direct labour
Other variable manufacturing costs
$700,000
Depreciation of factory building and manufacturing equipment
120,000
Depreciation of factory building and manufacturing equipment 60,000
Other fixed manufacturing overhead
16,000
What amount should be considered product costs for external reporting purposes if the company uses absorption costing?
a. $820,000
b. $76,000
c. $896,000
d. $836,000
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