Chawke Company's relevant range of production is 24,000 to 31,000 units. When it produces and sells 27,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $8.40 Direct labor $5.40 Variable manufacturing overhead. $2.90 Fixed manufacturing overhead $6.40 Fixed selling expense $4.90 Fixed administrative expense $3.90 Sales commissions $2.40 Variable administrative expense $1.90 Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 27,500 units? 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 27,500 units? 3. For financial accounting purposes, what is the total amount of product costs incurred to make 31,000 units? 4. For financial accounting purposes, what is the total amount of period costs incurred to sell 24,000 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
Chawke Company's relevant range of production is 24,000 to 31,000 units. When it produces and sells 27,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $8.40 Direct labor $5.40 Variable manufacturing overhead. $2.90 Fixed manufacturing overhead $6.40 Fixed selling expense $4.90 Fixed administrative expense $3.90 Sales commissions $2.40 Variable administrative expense $1.90 Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 27,500 units? 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 27,500 units? 3. For financial accounting purposes, what is the total amount of product costs incurred to make 31,000 units? 4. For financial accounting purposes, what is the total amount of period costs incurred to sell 24,000 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Chawke Company's relevant range of production is 24,000 to 31,000 units. When it produces and sells 27,500 units, its
average costs per unit are as follows:
Average
Cost per
Unit
Direct materials
$8.40
Direct labor
$5.40
Variable manufacturing overhead.
$2.90
Fixed manufacturing overhead
$6.40
Fixed selling expense
$4.90
Fixed administrative expense
$3.90
Sales commissions
$2.40
Variable administrative expense
$1.90
Required:
1. For financial accounting purposes, what is the total amount of product costs incurred to make 27,500 units?
2. For financial accounting purposes, what is the total amount of period costs incurred to sell 27,500 units?
3. For financial accounting purposes, what is the total amount of product costs incurred to make 31,000 units?
4. For financial accounting purposes, what is the total amount of period costs incurred to sell 24,000 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
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