Learned Corporation has provided the following information: Cost per Unit $ 5.20 $ 4.35 $ 1.95 Cost per Direct materials Period Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense 24 28,800 $ 0.40 $ 0.30 2$ 7,800 Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 6,000 units? b. For financial reporting purposes, what is the total amount of period costs incurred to sell 6,000 units? c. If the selling price is $24.00 per unit, what is the contribution margin per unit sold? (Round your answer to 2 decimal places.) d. If 7,000 units are produced, what is the total amount of direct manufacturing cost incurred? e. If 7,000 units are produced, what is the total amount of indirect manufacturing costs incurred?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
6
Learned Corporation has provided the following information:
Cost per
Cost per
Unit
$ 5.20
$ 4.35
$ 1.95
Period
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Sales commissions
Variable administrative expense
Fixed selling and administrative expense
24
28,800
$ 0.40
$ 0.30
7,800
Required:
a. For financial reporting purposes, what is the total amount of product costs incurred to make 6,000 units?
b. For financial reporting purposes, what is the total amount of period costs incurred to sell 6,000 units?
c. If the selling price is $24.00 per unit, what is the contribution margin per unit sold? (Round your answer to 2 decimal places.)
d. If 7,000 units are produced, what is the total amount of direct manufacturing cost incurred?
e. If 7,000 units are produced, what is the total amount of indirect manufacturing costs incurred?
Total product (manufacturing) cost
b. Total period (nonmanufacturing) cost
Contribution margin per unit
C.
d.
Total direct manufacturing cost
e.
Total indirect manufacturing cost
Transcribed Image Text:Learned Corporation has provided the following information: Cost per Cost per Unit $ 5.20 $ 4.35 $ 1.95 Period Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense 24 28,800 $ 0.40 $ 0.30 7,800 Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 6,000 units? b. For financial reporting purposes, what is the total amount of period costs incurred to sell 6,000 units? c. If the selling price is $24.00 per unit, what is the contribution margin per unit sold? (Round your answer to 2 decimal places.) d. If 7,000 units are produced, what is the total amount of direct manufacturing cost incurred? e. If 7,000 units are produced, what is the total amount of indirect manufacturing costs incurred? Total product (manufacturing) cost b. Total period (nonmanufacturing) cost Contribution margin per unit C. d. Total direct manufacturing cost e. Total indirect manufacturing cost
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