Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kubin Companys relevant range of production is 10,000 to 12,000 units. When it produces and sells 11,000 units, its average costs per unit are as

Kubin Companys relevant range of production is 10,000 to 12,000 units. When it produces and sells 11,000 units, its average costs per unit are as follows:

Average Cost per Unit

Direct materials $7.10

Direct labor$4.10

Variable manufacturing overhead$1.60

Fixed manufacturing overhead$5.10

Fixed selling expense$3.60

Fixed administrative expense$2.60

Sales commissions$1.10

Variable administrative expense$0.60

Required:

1. For financial accounting purposes, what is the total amount of product costs incurred to make 11,000 units?

2. For financial accounting purposes, what is the total amount of period costs incurred to sell 11,000 units?

3. For financial accounting purposes, what is the total amount of product costs incurred to make 12,000 units?

4. For financial accounting purposes, what is the total amount of period costs incurred to sell 10,000 units?

(For all requirements, do not round intermediate calculations.)


Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Product Costing Concepts And Applications

Authors: Ralph S. Polimeni

3rd Edition

0072390840, 978-0072390841

More Books

Students also viewed these Accounting questions

Question

What are the limitations of financial ratios?

Answered: 1 week ago

Question

=+Construct a data- and research-driven SWOT analysis

Answered: 1 week ago

Question

=+Who are our customers?

Answered: 1 week ago

Question

=+What are our goals presently?

Answered: 1 week ago