Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 14,000 units? 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 14,000 units? 3. For financial accounting purposes, what is the total amount of product costs incurred to make 16,000 units? 4. For financial accounting purposes, what is the total amount of period costs incurred to sell 12,000 units?
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Kubin Company's relevant range of production is 12,000 to 16,000 units. When it produces and sells 14,000 units, its
average costs per unit are as follows:
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
Average
Cost per
Unit
$7.30
$ 4.30
$ 1.80
$5.30
$ 3.80
$ 2.80
$ 1.30
$ 0.80
Required:
1. For financial accounting purposes, what is the total amount of product costs incurred to make 14,000 units?
2. For financial accounting purposes, what is the total amount of period costs incurred to sell 14,000 units?
3. For financial accounting purposes, what is the total amount of product costs incurred to make 16,000 units?
4. For financial accounting purposes, what is the total amount of period costs incurred to sell 12,000 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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fff3c822f-ba0c-45ea-b1fb-317844b85f73%2Fb3d34305-3a18-42b8-b161-792fdbcda6ce%2Fmb6d9p_processed.jpeg&w=3840&q=75)
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