Answer (B) is correct . Product costs can be associated with a specific product. Product costs include direct materials and direct labor. Factory overhead cannot be traced to specific products and therefore is allocated to all products produced. Thus, the amount of costs traceable to specific products in the production process is $228,000 ($120,000 + $108,000).
Answer (A) is incorrect because The amount of $234,000 includes factory overhead.
Answer (C) is incorrect because The amount of $120,000 excludes direct labor.
Answer (D) is incorrect because The amount of $108,000 excludes direct materials.
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What is the amount of costs traceable to specific products?
