Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kubin Company s relevant range of production is 1 8 , 0 0 0 to 2 2 , 0 0 0 units. When it produces

Kubin Companys relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows:
Average Cost per Unit
Direct materials $ 7.00
Direct labor $ 4.00
Variable manufacturing overhead $ 1.50
Fixed manufacturing overhead $ 5.00
Fixed selling expense $ 3.50
Fixed administrative expense $ 2.50
Sales commissions $ 1.00
Variable administrative expense $ 0.50
Required:
For financial accounting purposes, what is the total product cost incurred to make 20,000 units?
For financial accounting purposes, what is the total period cost incurred to sell 20,000 units?
For financial accounting purposes, what is the total product cost incurred to make 22,000 units?
For financial accounting purposes, what is the total period cost incurred to sell 18,000 units? 1. Total Product Cost: 2. Total Period Cost: 3. Total Product Cost: 4. Total Period Cost:

Step by Step Solution

3.40 Rating (144 Votes )

There are 3 Steps involved in it

Step: 1

1 Total Product Cost for 20000 Units To calculate the total product cost we only consider variable costs costs that change with production volume asso... blur-text-image

Get Instant Access to Expert-Tailored 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

Managerial Accounting

Authors: Ray Garrison, Eric Noreen, Peter Brewer

16th edition

1259307417, 978-1260153132, 1260153134, 978-1259307416

More Books

Students also viewed these Accounting questions