Excersise 1-9 please help
Beginning merchandls Ending merchandise inventory Merchandise purchases.. $180,000 Required I. Prepare a traditional income statement. 2. Prepare a contribution format income statement. EXERCISE 1-7 Direct and Indirect Costs LO1-1 Kubin Company's relevant range of production is 18,000 to 22,000 units. When it prod sells 20,000 units, its average costs per unit are as follows: Average Cost per Unit $7.00 $4.00 $1.50 $5.00 $3.50 $2.50 $1.00 $0.50 Re Direct materials Direct labor Variable manufacturing overhead Sales commissions Variable administrative expense. Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 20,000 units? b. What is the total indirect manufacturing cost incurred to make 20,000 unts? 2. Assume the cost object is the Manufacturing Department and that its total output is 20,000 a. How much total manufacturing cost is directly traceable to the Manufacturing Deparin b. How much total manufacturing cost is an indirect cost that cannot be easily tracca to Manufacturing Department? Assume the cost object is the company's various sales representatives. Furthermore. that the company spent $50,000 of its total fixed selling remainder of the total fixed selling expense comprised the fixed portion sales representatives' compensation. a. When the company sells 20,000 units, what is the total direct selling expens 3. expense on advertising and of the compar that can readily traced to individual sales representatives? b. When the company sells 20,000 units, what is the total indirect sellingexpese not be readily traced to individual sales representatives? n's administrative expenses always going to be treated as indirect costs tn management reports? EXERCISE 1-8 Product Costs and Period Costs; Variable and Fixed Costs LO1-3, Refer to the data given in Exercise 1-7. Answer all questions independently Required 1. For financial accounting purposes, what is the total amount of product costs LO 20,000 units? For financial accounting purposes, what is the total amount of period costs 20,000 units? 2