Kubin Company\'s relevant range of production is 19,000 to 20,000 units. When it

Question

Kubin Company's relevant range of production is 19,000 to 20,000 units. When it produces and sells 19,500 units, its average costs per unit are as follows Averag Cost per Unit $ 7.90 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense 4.90 $ 2.40 5.90 $ 4.40 % 3.40 $ 1.90 $ 1.40 Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 19,500 units? 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 19,500 units? 3. For financial accounting purposes, what is the total amount of product costs incurred to make 20,000 units? 4. For financial accounting purposes, what is the total amount of period costs incurred to sell 19,000 units? (For all requirements, do not round intermediate calculations.) 1. Total amount of product costs 2. Total amount of period costs incurred 3. Total amount of product costs 4. Total amount of period costs

Explanation / Answer

1 Direct materials 154050 =19500*7.9 Direct labor 95550 =19500*4.9 Variable manufacturing overhead 46800 =19500*2.4 Fixed manufacturing overhead 115050 =19500*5.9 Total amount of product costs 411450 2 Fixed selling expense 85800 =19500*4.4 Fixed administrative expense 66300 =19500*3.4 Sales commissions 37050 =19500*1.9 Variable administrative expense 27300 =19500*1.4 Total amount of period costs 216450 3 Direct materials 158000 =20000*7.9 Direct labor 98000 =20000*4.9 Variable manufacturing overhead 48000 =20000*2.4 Fixed manufacturing overhead 115050 =19500*5.9 Total amount of product costs 419050 4 Fixed selling expense 85800 =19500*4.4 Fixed administrative expense 66300 =19500*3.4 Sales commissions 36100 =19000*1.9 Variable administrative expense 26600 =19000*1.4 Total amount of period costs 214800

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