Cost Classifications (Algo) [The following information applies to the questions displayed below] Kubin Company's relevant range of production is 28,000 to 31,500 units. When it produces and sells 29,750 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $8.80 $ 5.80 $ 3.30 $6.80 $5.30 1. Total amount of product cost 2. Total amount of period cost incurred 3. Total amount of product cost 4. Total amount of period cost $4.30 $ 2.80 $2.30 Exercise 1-8 (Algo) Product Costs and Period Costs; Variable and Fixed Costs [LO1-3, LO1-4] Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 29,750 units? 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 29,750 units? 3. For financial accounting purposes, what is the total amount of product costs incurred to make 31,500 units? 4. For financial accounting purposes, what is the total amount of period costs incurred to sell 28,000 units? (For all requirements, do not round intermediate calculations.)
Cost Classifications (Algo) [The following information applies to the questions displayed below] Kubin Company's relevant range of production is 28,000 to 31,500 units. When it produces and sells 29,750 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $8.80 $ 5.80 $ 3.30 $6.80 $5.30 1. Total amount of product cost 2. Total amount of period cost incurred 3. Total amount of product cost 4. Total amount of period cost $4.30 $ 2.80 $2.30 Exercise 1-8 (Algo) Product Costs and Period Costs; Variable and Fixed Costs [LO1-3, LO1-4] Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 29,750 units? 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 29,750 units? 3. For financial accounting purposes, what is the total amount of product costs incurred to make 31,500 units? 4. For financial accounting purposes, what is the total amount of period costs incurred to sell 28,000 units? (For all requirements, do not round intermediate calculations.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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![Cost Classifications (Algo)
[The following information applies to the questions displayed below.]
Kubin Company's relevant range of production is 28,000 to 31,500 units. When it produces and sells 29,750 units, its
average costs per unit are as follows:
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
Average Cost
per Unit
$ 8.80
$5.80
$ 3.30
$ 6.80
$5.30
$.4.30
$ 2.80
$ 2.30
Exercise 1-8 (Algo) Product Costs and Period Costs; Variable and Fixed Costs [LO1-3, LO1-4]
1. Total amount of product cost
2. Total amount of period cost incurred
3. Total amount of product cost
4. Total amount of period cost
Required:
1. For financial accounting purposes, what is the total amount of product costs incurred to make 29,750 units?
2. For financial accounting purposes, what is the total amount of period costs incurred to sell 29,750 units?
3. For financial accounting purposes, what is the total amount of product costs incurred to make 31,500 units?
4. For financial accounting purposes, what is the total amount of period costs incurred to sell 28,000 units?
(For all requirements, do not round intermediate calculations.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F85768409-a9bc-4d2e-8722-78167576248d%2F1db7e17d-4bb7-4c96-93fa-a69184fdd689%2F7cvr8zd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Cost Classifications (Algo)
[The following information applies to the questions displayed below.]
Kubin Company's relevant range of production is 28,000 to 31,500 units. When it produces and sells 29,750 units, its
average costs per unit are as follows:
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
Average Cost
per Unit
$ 8.80
$5.80
$ 3.30
$ 6.80
$5.30
$.4.30
$ 2.80
$ 2.30
Exercise 1-8 (Algo) Product Costs and Period Costs; Variable and Fixed Costs [LO1-3, LO1-4]
1. Total amount of product cost
2. Total amount of period cost incurred
3. Total amount of product cost
4. Total amount of period cost
Required:
1. For financial accounting purposes, what is the total amount of product costs incurred to make 29,750 units?
2. For financial accounting purposes, what is the total amount of period costs incurred to sell 29,750 units?
3. For financial accounting purposes, what is the total amount of product costs incurred to make 31,500 units?
4. For financial accounting purposes, what is the total amount of period costs incurred to sell 28,000 units?
(For all requirements, do not round intermediate calculations.)
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