Martinez Company's relevant range of production is 7,500 units to 12, 500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost Per Unit Direct materials $ 5.90 Direct labor $ 3.40 Variable manufacturing overhead $ 1.60 Fixed manufacturing overhead $ 4.00 Fixed selling expense $ 2.90 Fixed administrative expense $ 2.20 Sales commissions $ 1.20 Variable administrative expense $ 0.45 Required: 1. For financial accounting purposes, what is the total product cost incurred to make 10, 000 units? Note: Do not round intermediate calculations.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Martinez Company's relevant range of production is 7,500 units to 12, 500 units. When it produces and sells 10,000
units, its average costs per unit are as follows: Average Cost Per Unit Direct materials $ 5.90 Direct labor $ 3.40 Variable
manufacturing overhead $ 1.60 Fixed manufacturing overhead $ 4.00 Fixed selling expense $ 2.90 Fixed administrative
expense $ 2.20 Sales commissions $ 1.20 Variable administrative expense $ 0.45 Required: 1. For financial accounting
purposes, what is the total product cost incurred to make 10, 000 units? Note: Do not round intermediate calculations.
Transcribed Image Text:Martinez Company's relevant range of production is 7,500 units to 12, 500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost Per Unit Direct materials $ 5.90 Direct labor $ 3.40 Variable manufacturing overhead $ 1.60 Fixed manufacturing overhead $ 4.00 Fixed selling expense $ 2.90 Fixed administrative expense $ 2.20 Sales commissions $ 1.20 Variable administrative expense $ 0.45 Required: 1. For financial accounting purposes, what is the total product cost incurred to make 10, 000 units? Note: Do not round intermediate calculations.
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