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

50.1K

Verified Solution

Question

Accounting

Exercise 1-8 Product Costs and Period Costs; Variable and FixedCosts [LO1-3, LO1-4]
Kubin Company’srelevant range of production is 30,000 to 35,000 units. When itproduces and sells 32,500 units, its average costs per unit are asfollows:

Average Cost per Unit
Directmaterials $ 9.00
Directlabor $ 6.00
Variablemanufacturing overhead $ 3.50
Fixedmanufacturing overhead $ 7.00
Fixed sellingexpense $ 5.50
Fixedadministrative expense $ 4.50
Salescommissions $ 3.00
Variableadministrative expense $ 2.50
Required:
1. For financialaccounting purposes, what is the total amount of product costsincurred to make 32,500 units?
2. For financialaccounting purposes, what is the total amount of period costsincurred to sell 32,500 units?
3. For financialaccounting purposes, what is the total amount of product costsincurred to make 35,000 units?
4. For financialaccounting purposes, what is the total amount of period costsincurred to sell 30,000 units?
(For allrequirements, do not round intermediate calculations.)
Answer is complete butnot entirely correct.
1. Total amountof product costs $828,750selected answer correct
2. Total amountof period costs incurred $503,750selected answer correct
3. Total amountof product costs
4. Total amount of period costs

Answer & Explanation Solved by verified expert

4.0 Ratings (806 Votes)

At production and sales volume of 32500 units Variable Product Costs per unit Direct Materials Direct Labor Variable Manufacturing Overhead Variable Product Costs per unit 900 600 350 Variable Product Costs per unit 1850 See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

Exercise 1-8 Product Costs and Period Costs; Variable and FixedCosts [LO1-3, LO1-4]Kubin Company’srelevant range of production is 30,000 to 35,000 units. When itproduces and sells 32,500 units, its average costs per unit are asfollows: Average Cost per UnitDirectmaterials$9.00Directlabor$6.00Variablemanufacturing overhead$3.50Fixedmanufacturing overhead$7.00Fixed sellingexpense$5.50Fixedadministrative expense$4.50Salescommissions$3.00Variableadministrative expense$2.50Required:1. For financialaccounting purposes, what is the total amount of product costsincurred to make 32,500 units?2. For financialaccounting purposes, what is the total amount of period costsincurred to sell 32,500 units?3. For financialaccounting purposes, what is the total amount of product costsincurred to make 35,000 units?4. For financialaccounting purposes, what is the total amount of period costsincurred to sell 30,000 units?(For allrequirements, do not round intermediate calculations.)Answer is complete butnot entirely correct.1.Total amountof product costs$828,750selected answer correct2.Total amountof period costs incurred$503,750selected answer correct3.Total amountof product costs4.Total amount of period costs

	Average Cost per Unit
Directmaterials	$	9.00
Directlabor	$	6.00
Variablemanufacturing overhead	$	3.50
Fixedmanufacturing overhead	$	7.00
Fixed sellingexpense	$	5.50
Fixedadministrative expense	$	4.50
Salescommissions	$	3.00
Variableadministrative expense	$	2.50