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Please show all calculations Question 3 (7 pts) Blue Pastures, Inc. is a manufacturer that produces milk. Its relevant range of production for 2018 is
Please show all calculations
Question 3 (7 pts) Blue Pastures, Inc. is a manufacturer that produces milk. Its relevant range of production for 2018 is 55,000 to 68,000 gallons of milk. When it produces and sells 60,000 gallons, its average costs per unit are as follows: Average Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses cost per gallon $ 0.08 $ 0.23 $ 0.11 0.19 $0.22 $ 0.35 a. For financial accounting purposes, what is the total amount of product costs incurred to make 60,000 gallons of milk? b. For financial accounting purposes, what is the total amount of period costs incurred to make 60,000 gallons of milk? c. If 57,500 gallons of milk are produced and sold, what is the variable cost per unit produced and sold? d. If 65,000 gallons of milk are produced and sold, what is the variable cost per unit produced and sold? e. What is the total variable cost of producing and selling 57,500 gallons of milk? f. What is the total variable cost of producing and selling 65,000 gallons of milk? g. If 57,500 gallons of milk are produced and sold, what is the fixed manufacturing cost per unit produced and sold? If 65,000 gallons of milk are produced and sold, what is the fixed manufacturing cost per unit produced and sold? h. i. What is the total fixed manufacturing cost of producing and selling 57,500 gallons of milk? j. What is the total fixed manufacturing cost of producing and selling 65,000 gallons of milk? k. If the selling price is $2.00 per gallon of milk, what is the total contribution margin when producing and selling 57,500 gallons of milk? If the selling price is $2.00 per gallon of milk, what is the total contribution margin when producing and selling 65,000 gallons of milkStep by Step Solution
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