Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Gumption Company has provided the following information: Cost per Unit Cost per Period Direct materials $5.30 Direct labor $4.40 Variable manufacturing overhead $2.00 Fixed manufacturing

Gumption Company has provided the following information: Cost per Unit Cost per Period Direct materials $5.30 Direct labor $4.40 Variable manufacturing overhead $2.00 Fixed manufacturing overhead $22,000 Sales commissions $0.50 Variable administrative expense $0.40 Fixed selling and administrative expense $ 6,000 Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 5,000 units? b. For financial reporting purposes, what is the total amount of period costs incurred to sell 5,000 units? c. If the selling price is $24.10 per unit, what is the contribution margin per unit sold? (Round your answer to 2 decimal ple d. If 6,000 units are produced, what is the total amount of direct manufacturing cost incurred? e. If 6,000 units are produced, what is the total amount of indirect manufacturing costs incurred? a. Total product (manufacturing) cost $ b. Total period (nonmanufacturing) cost $ 63,000 476,000 c. Contribution margin per unit d. Total direct manufacturing cost e: Total indirect manufacturing costimage text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Smith and Roberson Business Law

Authors: Richard A. Mann, Barry S. Roberts

15th Edition

978-0538473637

Students also viewed these Accounting questions