FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Chapter 1 Assignment i
5
%
N
2
W
#
S
Total period cost
Required information
[The following information applies to the questions displayed below.]
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
Martinez Company's relevant range of production is 7,500 units to
12,500 units. When it produces and sells 10,000 units, its average
costs per unit are as follows:
Okay
Y
3
2. For financial accounting purposes, what is the total amount of period costs incurred
to sell 10,000 units? (Do not round intermediate calculations.)
$
D
4
R
&
Saved
LL
$
70,000
5
T
Help
6
G H
Save & Exit
Average Cost
per Unit
$7.00
$ 4.50
$ 1.40
$ 4.00
$ 4.00
$ 2.10
$ 1.10
$ 0.55
You
8
Check my work
K
!
Submit
о
?
0
P
delete
return
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Transcribed Image Text:Chapter 1 Assignment i 5 % N 2 W # S Total period cost Required information [The following information applies to the questions displayed below.] Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Okay Y 3 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 10,000 units? (Do not round intermediate calculations.) $ D 4 R & Saved LL $ 70,000 5 T Help 6 G H Save & Exit Average Cost per Unit $7.00 $ 4.50 $ 1.40 $ 4.00 $ 4.00 $ 2.10 $ 1.10 $ 0.55 You 8 Check my work K ! Submit о ? 0 P delete return
Expert Solution
Check Mark
Explanation -

Period Cost -

Period Costs are the cost not directly related to the product. It is generally the indirect cost incurred by the company. It includes administrative and selling expenses.

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