FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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1 of 2
Required information
[The following information applies to the questions displayed below.]
Kubin Company's relevant range of production is 11,000 to 14,000 units. When it produces and sells 12,500 units, its
average costs per unit are as follows:
Average
Cost per
Unit
Direct materials
$ 7.20
Direct labor
$ 4.20
Variable manufacturing overhead
$ 1.70
Fixed manufacturing overhead
$ 5.20
Book
Sales commissions
Fixed selling expense
$ 3.70
Fixed administrative expense
$ 2.70
$ 1.20
Variable administrative expense
$ 0.70
rint
Required:
1. For financial accounting purposes, what is the total amount of product costs incurred to make 12,500 units?
2. For financial accounting purposes, what is the total amount of period costs incurred to sell 12,500 units?
3. For financial accounting purposes, what is the total amount of product costs incurred to make 14,000 units?
4. For financial accounting purposes, what is the total amount of period costs incurred to sell 11,000 units?
(For all requirements, do not round intermediate calculations.)
1. Total amount of product cost
2. Total amount of period cost incurred
3. Total amount of product cost
4. Total amount of period cost
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Transcribed Image Text:2 1 of 2 Required information [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 11,000 to 14,000 units. When it produces and sells 12,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.20 Direct labor $ 4.20 Variable manufacturing overhead $ 1.70 Fixed manufacturing overhead $ 5.20 Book Sales commissions Fixed selling expense $ 3.70 Fixed administrative expense $ 2.70 $ 1.20 Variable administrative expense $ 0.70 rint Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 12,500 units? 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 12,500 units? 3. For financial accounting purposes, what is the total amount of product costs incurred to make 14,000 units? 4. For financial accounting purposes, what is the total amount of period costs incurred to sell 11,000 units? (For all requirements, do not round intermediate calculations.) 1. Total amount of product cost 2. Total amount of period cost incurred 3. Total amount of product cost 4. Total amount of period cost
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