Newspaper advertisements. . . . . . . . . . . . . . . . . . . . $5,100
Payment to consultant for advice on location of new store. . . . . . . . . . . . . . $2,300
Purchases of merchandise. . . . . . . . . . . . . . . . . . . . . $40,000
Freight-in. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,900
Salespeople's salaries. . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,200
Depreciation expense on delivery trucks. . . . . . . . . . $1,100
Research on whether store should sell satellite radio service. . . . . . . . $200
Customer Complaint Department. . . . . . . . . . . . . . . . . . $800
Rearranging store layout. . . . . . . . . . . . . . . . . . . . . . . . . $950

Required:
What is the total production cost?

Total production cost refers to the addition of the direct materials, labor costs, and manufacturing overhead costs that are directly related to the production of a good.

From the question, total production cost can be calculated as follows:

Total production cost = Purchases of merchandise + Freight-in = $40,000 + $3,900 = $43,900

Therefore, total production cost is $43,900.