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Exercise 1-8 Product Costs and Period Costs; Variable and Fixed Costs [LO1-3, LO1-4] Kubin Company’s relevant range...

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Accounting

Exercise 1-8 Product Costs and Period Costs; Variable and FixedCosts [LO1-3, LO1-4]

Kubin Company’s relevant range of production is 21,000 to 25,000units. When it produces and sells 23,000 units, its average costsper unit are as follows:

  

Average Cost per Unit
Direct materials$8.10
Direct labor$5.10
Variable manufacturing overhead$2.60
Fixed manufacturing overhead$6.10
Fixed selling expense$4.60
Fixed administrative expense$3.60
Sales commissions$2.10
Variable administrative expense$1.60

Required:

1. For financial accounting purposes, what is the total amountof product costs incurred to make 23,000 units?

2. For financial accounting purposes, what is the total amountof period costs incurred to sell 23,000 units?

3. For financial accounting purposes, what is the total amountof product costs incurred to make 25,000 units?

4. For financial accounting purposes, what is the total amountof period costs incurred to sell 21,000 units?

(For all requirements, do not round intermediatecalculations.)

Answer & Explanation Solved by verified expert
4.0 Ratings (800 Votes)
1 Average Cost per Unit Direct materials 810 Direct labor 510 Variable manufacturing overhead 260 Fixed manufacturing overhead 610 Total product cost 2190 For financial accounting purposes the total amount of product costs incurred to    See Answer
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