FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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[The following information applies to the questions displayed below.]
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
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Transcribed Image Text:Required information [The following information applies to the questions displayed below.] 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
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