Learned Corporation has provided the following information: Direct materials. Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Cost per Unit Cost per Period $ 5.80 $ 4.00 $ 1.60 a. Total product cost b. Total period cost $ 0.70 $ 0.60 Variable administrative expense Fixed selling and administrative expense Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 6,000 units? b. For financial reporting purposes, what is the total amount of period costs incurred to sell 6,000 units? c. If the selling price is $23.30 per unit, what is the contribution margin per unit sold? Note: Round your answer to 2 decimal places. c. Contribution margin per unit d. Total direct manufacturing cost e. Total indirect manufacturing cost $ 24,000 d. If 7,000 units are produced, what is the total amount of direct manufacturing cost incurred? e. If 7,000 units are produced, what is the total amount of indirect manufacturing costs incurred? $ 8,400

Learned Corporation has provided the following information: Direct materials. Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Cost per Unit Cost per Period $ 5.80 $ 4.00 $ 1.60 a. Total product cost b. Total period cost $ 0.70 $ 0.60 Variable administrative expense Fixed selling and administrative expense Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 6,000 units? b. For financial reporting purposes, what is the total amount of period costs incurred to sell 6,000 units? c. If the selling price is $23.30 per unit, what is the contribution margin per unit sold? Note: Round your answer to 2 decimal places. c. Contribution margin per unit d. Total direct manufacturing cost e. Total indirect manufacturing cost $ 24,000 d. If 7,000 units are produced, what is the total amount of direct manufacturing cost incurred? e. If 7,000 units are produced, what is the total amount of indirect manufacturing costs incurred? $ 8,400

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Learned Corporation has provided the following information:
Direct materials.
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Sales commissions
a. Total product cost
b. Total period cost
Cost per Unit Cost per Period
$ 5.80
$ 4.00
$ 1.60
c. Contribution margin per unit
d. Total direct manufacturing cost
e. Total indirect manufacturing cost
$ 0.70
$ 0.60
Variable administrative expense
Fixed selling and administrative expense
Required:
a. For financial reporting purposes, what is the total amount of product costs incurred to make 6,000 units?
b. For financial reporting purposes, what is the total amount of period costs incurred to sell 6,000 units?
c. If the selling price is $23.30 per unit, what is the contribution margin per unit sold?
Note: Round your answer to 2 decimal places.
d. If 7,000 units are produced, what is the total amount of direct manufacturing cost incurred?
e. If 7,000 units are produced, what is the total amount of indirect manufacturing costs incurred?
$ 24,000
$ 8,400

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