Required information [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 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 $7.00 $ 4.00 $ 1.50 $5.00 $ 3.50 $ 2.50 $1.00 $0.50 Required: 1. For financial accounting purposes, what is the total product cos incurred to make 20,000 units? 2. For financial accounting purposes, what is the total period cost. incurred to sell 20,000 units? 3. For financial accounting purposes, what is the total product cos incurred to make 22,000 units? 4. For financial accounting purposes, what is the total period cost. incurred to sell 18,000 units? Note: For all requirements, do not round intermediate calculations. 1. Total product cost 2. Total period cost 3. Total product cost 4. Total period cost
Required information [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 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 $7.00 $ 4.00 $ 1.50 $5.00 $ 3.50 $ 2.50 $1.00 $0.50 Required: 1. For financial accounting purposes, what is the total product cos incurred to make 20,000 units? 2. For financial accounting purposes, what is the total period cost. incurred to sell 20,000 units? 3. For financial accounting purposes, what is the total product cos incurred to make 22,000 units? 4. For financial accounting purposes, what is the total period cost. incurred to sell 18,000 units? Note: For all requirements, do not round intermediate calculations. 1. Total product cost 2. Total period cost 3. Total product cost 4. Total period cost
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
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Concept explainers
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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Question
![Required information
[The following information applies to the questions displayed
below.]
Kubin Company's relevant range of production is 18,000 to 22,000
units. When it produces and sells 20,000 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
$ 7.00
$ 4.00
$ 1.50
$ 5.00
$ 3.50
$ 2.50
$ 1.00
$ 0.50
Required:
1. For financial accounting purposes, what is the total product cost
incurred to make 20,000 units?
2. For financial accounting purposes, what is the total period cost
incurred to sell 20,000 units?
3. For financial accounting purposes, what is the total product cost
incurred to make 22,000 units?
4. For financial accounting purposes, what is the total period cost
incurred to sell 18,000 units?
1. Total product cost
2. Total period cost
3. Total product cost
4. Total period cost
Note: For all requirements, do not round intermediate
calculations.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7644b4b6-0cce-43c8-b7c8-61e6d1e0c30f%2F99425c47-95aa-485d-b675-b21d45b2dcf8%2Fjllnvb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed
below.]
Kubin Company's relevant range of production is 18,000 to 22,000
units. When it produces and sells 20,000 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
$ 7.00
$ 4.00
$ 1.50
$ 5.00
$ 3.50
$ 2.50
$ 1.00
$ 0.50
Required:
1. For financial accounting purposes, what is the total product cost
incurred to make 20,000 units?
2. For financial accounting purposes, what is the total period cost
incurred to sell 20,000 units?
3. For financial accounting purposes, what is the total product cost
incurred to make 22,000 units?
4. For financial accounting purposes, what is the total period cost
incurred to sell 18,000 units?
1. Total product cost
2. Total period cost
3. Total product cost
4. Total period cost
Note: For all requirements, do not round intermediate
calculations.
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VIEWStep 2: Determine the total amount of product costs incurred to make 20,000 units
VIEWStep 3: Determine the total amount of period costs incurred to make 20,000 units
VIEWStep 4: Determine the total amount of product costs incurred to make 22,000 units
VIEWStep 5: Determine the total amount of period costs incurred to sell 18,000 units
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