Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information Skip to question [The following information applies to the questions displayed below.] Kubin Companys relevant range of production is 30,000 to 35,000 units.

Required information Skip to question [The following information applies to the questions displayed below.]

Kubin Companys relevant range of production is 30,000 to 35,000 units. When it produces and sells 32,500 units, its average costs per unit are as follows:

Average Cost per Unit Direct materials $ 9.00 Direct labor $ 6.00 Variable manufacturing overhead $ 3.50 Fixed manufacturing overhead $ 7.00 Fixed selling expense $ 5.50 Fixed administrative expense $ 4.50 Sales commissions $ 3.00 Variable administrative expense $ 2.50 Required:

1. For financial accounting purposes, what is the total amount of product costs incurred to make 32,500 units?

2. For financial accounting purposes, what is the total amount of period costs incurred to sell 32,500 units?

3. For financial accounting purposes, what is the total amount of product costs incurred to make 35,000 units?

4. For financial accounting purposes, what is the total amount of period costs incurred to sell 30,000 units?

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

image text in transcribed

1. Total amount of product costs 2. Total amount of period costs incurred 3. Total amount of product costs 4. Total amount of period costs

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

Modern Advanced Accounting In Canada

Authors: Hilton Murray, Herauf Darrell

7th Edition

1259066487, 978-1259066481

Students also viewed these Accounting questions