Question 3:

Kubin Company's relevant range of production is 22,000 to 27,000 units. When it produces and sells 24,500 units, its average costs per unit are as follows:

Average Cost per Unit

Direct materials $8.20

Direct labor $5.20

Variable manufacturing overhead $2.70

Fixed manufacturing overhead $6.20

Fixed selling expense $4.70

Fixed administrative expense $3.70

Sales commissions $2.20

Variable administrative expense $1.70

Required:

1. Assume the cost object is units of production:

a. What is the total direct manufacturing cost incurred to make 24,500 units?

b. What is the total indirect manufacturing cost incurred to make 24,500 units?

2. Assume the cost object is the Manufacturing Department and that its total output is 24,500 units.

a. How much total manufacturing cost is directly traceable to the Manufacturing Department?

b. How much total manufacturing cost is an indirect cost that cannot be easily traced to the Manufacturing Department?

3. Assume the cost object is the company's various sales representatives. Furthermore, assume that the company spent$90,650 of its total fixed selling expense on advertising and the remainder of the total fixed selling expense comprised the fixed portion of the company's sales representatives' compensation.

a. When the company sells 24,500 units, what is the total direct selling expense that can be readily traced to individual sales representatives?

b. When the company sells 24,500 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?

Question 4:

Kubin Company's relevant range of production is 20,000 to 23,000 units. When it produces and sells 21,500 units, its average costs per unit are as follows:

Average Cost per Unit

Direct materials $8.00

Direct labor $5.00

Variable manufacturing overhead $2.50

Fixed manufacturing overhead $6.00

Fixed selling expense $4.50

Fixed administrative expense $3.50

Sales commissions $2.00

Variable administrative expense $1.50

Required:

1. For financial accounting purposes, what is the total amount of product costs incurred to make 21,500 units?

2. For financial accounting purposes, what is the total amount of period costs incurred to sell 21,500 units?

3. For financial accounting purposes, what is the total amount of product costs incurred to make 23,000 units?

4. For financial accounting purposes, what is the total amount of period costs incurred to sell 20,000 units?

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

Question 5:

The following data from the just completed year are taken from the accounting records of Mason Company:

Sales $653,000

Direct labor cost $82,000

Raw material purchases $134,000

Selling expenses $103,000

Administrative expenses $42,000

Manufacturing overhead applied to work in process $206,000

Actual manufacturing overhead costs $220,000

Raw materials beginning - $8,100

Raw materials ending - $10,400

Work in progress beginning - $5,700

Work in progress ending - $20,100

Finished goods beginning $70,000

Finished goods ending - $25,200

Required:

1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.

2. Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold.

3. Prepare an income statement.