Exercise 1 8 Product Costs and Period Costs Variable and Fixed Costs LO1 3, LO1 4 Kubin Companys relevant range of production is 30,000 to 35,000 units When it produces and sells 32,500 units, its average costs per unit are as follows Average Cost per Unit Direct materials $ 9 00 Direct labor $ 6 00 Variable manufacturing overhead $ 3 50 Fixed manufacturing overhead $ 7 00 Fixed selling expense $ 5 50 Fixed administrative expense $ 4 50 Sales commissions $ 3 00 Variable administrative expense $ 2 50 Required 1 For financial accounting purposes, what is the total amount of product costs incurred to make 32,500 units 2 For financial accounting purposes, what is the total amount of period costs incurred to sell 32,500 units 3 For financial accounting purposes, what is the total amount of product costs incurred to make 35,000 units 4 For financial accounting purposes, what is the total amount of period costs incurred to sell 30,000 units (For all requirements, do not round intermediate calculations ) Answer is complete but not entirely correct 1 Total amount of product costs $828,750selected answer correct 2 Total amount of period costs incurred $503,750selected answer correct 3 Total amount of product costs 4 Total amount of period costs

Question

Exercise 1 8 Product Costs and Period Costs  Variable and Fixed Costs  LO1 3, LO1 4  Kubin Companys relevant range of production is 30,000 to 35,000 units  When it produces and sells 32,500 units, its average costs per unit are as follows  Average Cost per Unit Direct materials $ 9 00 Direct labor $ 6 00 Variable manufacturing overhead $ 3 50 Fixed manufacturing overhead $ 7 00 Fixed selling expense $ 5 50 Fixed administrative expense $ 4 50 Sales commissions $ 3 00 Variable administrative expense $ 2 50 Required  1  For financial accounting purposes, what is the total amount of product costs incurred to make 32,500 units  2  For financial accounting purposes, what is the total amount of period costs incurred to sell 32,500 units  3  For financial accounting purposes, what is the total amount of product costs incurred to make 35,000 units  4  For financial accounting purposes, what is the total amount of period costs incurred to sell 30,000 units  (For all requirements, do not round intermediate calculations ) Answer is complete but not entirely correct  1  Total amount of product costs $828,750selected answer correct 2  Total amount of period costs incurred $503,750selected answer correct 3  Total amount of product costs 4  Total amount of period costs

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Exercise 1-8 Product Costs and Period Costs; Variable and Fixed Costs [LO1-3, LO1-4] Kubin Companys relevant range of production is 30,000 to 35,000 units. When

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	Average Cost per Unit
Direct materials	$	9.00
Direct labor	$	6.00
Variable manufacturing overhead	$	3.50
Fixed manufacturing overhead	$	7.00
Fixed selling expense	$	5.50
Fixed administrative expense	$	4.50
Sales commissions	$	3.00
Variable administrative expense	$	2.50