Kubin Company\'s relevant range of production is 16.000 to 24500 units, When it

Question

Kubin Company's relevant range of production is 16.000 to 24500 units, When it produces and sells 20,250 units, its average costs per unit are as follows: Average Cost 7.70 $4.70 2.20 pen Unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative1.20 5.70 4.20 s 3.20 1.70 expense Required 1 For financial accounting purposes, what is the total amount of product costs incurred to make 20,250 units? 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 20,250 units? 3. For financial accounting purposes, what is the total amount of product costs incurred to make 24,500 units? 4. For financial accounting purposes, what is the total amount of period costs incurred to sell 16,000 units? (For all requirements, do not round intermediate calculations.)

Explanation / Answer

1 Calculation of total amount of product cost Direct materials 155925 (20250*7.7) Direct labor 95175 (20250*4.7) Variable manufacturing overhead 44550 (20250*2.2) Fixed manufacturing overhead 115425 (20250*5.7) Total amount of product costs 411075 2 Calculation of total amount of period cost Fixed selling expenses 85050 Fixed administrative expenses 64800 Sales commission 34425 Variable administrative expenses 24300 Total period costs 208575 3 Calculation of total amount of product cost Direct materials 188650 (24500*7.7) Direct labor 115150 (24500*4.7) Variable manufacturing overhead 53900 (24500*2.2) Fixed manufacturing overhead 115425 (20250*5.7) Total amount of product costs 473125 4 Calculation of total amount of period cost Fixed selling expenses 85050 Fixed administrative expenses 64800 Sales commission 41650 Variable administrative expenses 29400 Total period costs 220900

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