Kubin Company's relevant range of production is 22,000 to 27,000 units. When it produces and sells 24,500 units, its average costs per unit are as follows: Average Cost per Unit $ 8.20 $ 5.20 $ 2.70 $ 6.20 $ 4.70 $ 3.70 $ 2.20 $ 1.70 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 24,500 units? 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 24,500 units? 3. For financial accounting purposes, what is the total amount of product costs incurred to make 27,000 units? 4. For financial accounting purposes, what is the total amount of period costs incurred to sell 22,000 units?

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
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Chapter5: Process Costing
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What are the necessary equations to solve 3 & 4?

Kubin Company's relevant range of production is 22,000 to 27,000 units. When it produces and sells 24,500 units, its average costs
per unit are as follows:
Average
Cost per
Unit
$ 8.20
$ 5.20
$ 2.70
$ 6.20
$ 4.70
$ 3.70
$ 2.20
$ 1.70
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
Required:
1. For financial accounting purposes, what is the total amount of product costs incurred to make 24,500 units?
2. For financial accounting purposes, what is the total amount of period costs incurred to sell 24,500 units?
3. For financial accounting purposes, what is the total amount of product costs incurred to make 27,000 units?
4. For financial accounting purposes, what is the total amount of period costs incurred to sell 22,000 units?
Transcribed Image Text:Kubin Company's relevant range of production is 22,000 to 27,000 units. When it produces and sells 24,500 units, its average costs per unit are as follows: Average Cost per Unit $ 8.20 $ 5.20 $ 2.70 $ 6.20 $ 4.70 $ 3.70 $ 2.20 $ 1.70 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 24,500 units? 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 24,500 units? 3. For financial accounting purposes, what is the total amount of product costs incurred to make 27,000 units? 4. For financial accounting purposes, what is the total amount of period costs incurred to sell 22,000 units?
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