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Crystal Soda produces​ lemon-lime soda. It incurred the following costs during the period​ (in thousands): Lemon Syrup ​$16,000 Delivery truck​ driver's wages ​$285 ​Freight-in for raw materials ​$1,300 Plant utilities ​$1,250 Assembly line wages ​$7,900 Plant​ janitor's wages ​$1,000 Customer hotline ​$220 Sales commissions ​$450 Bottles ​$1,490 Lime flavoring ​$1,020 What is the total amount of product costs for Crystal Soda for the​ period?

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Answer:

The total amount of product costs for Crystal Soda for the​ period is $29,960 (in thousands).

Explanation:

Product costs refer to the costs incurred by a business in order to create the product of the company or providing a service to the customers.

Product costs include direct materials costs, direct labor costs and manufacturing overhead costs

For Crystal Soda,

Product costs = Lemon Syrup + ​Freight-in for raw materials + Plant utilities + Assembly line wages + Plant​ janitor's wages + Bottles + Lime flavoring = $16,000 + ​$1,300 + $1,250 + $7,900 + $1,000 + $1,490 + ​$1,020 = $29,960

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