Product Cost Formula = Direct Labor + Direct Material + Factory Overheads.

Product Manufacturing Costing is the process of calculating the total expenses incurred in producing a product. It includes direct costs such as raw materials and labor, as well as indirect costs like factory overhead, machine depreciation, and administrative expenses. This costing helps businesses determine the selling price, profitability, and efficiency of their manufacturing processes.

Examples of Product cost mainly include the following expenses:

Direct material (DM)

Direct labor (DL)

Factory overheads (FOH)