Required information [The following information applies to the questions displayed below.] 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: 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 $7.00 $ 4.50 $ 1.40 $ 4.00 $ 4.00 $ 2.10 $ 1.10 $ 0.55 Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units? (Do not round intermediate calculations.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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nit 1 Chapter 1 Assignment i
1
t 1 of 15
S
Print
Period Ccb Home | barti.... 22 my.post.edu...
2
2
W
Total product cost
S
Direct materials.
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
Okay
3
E
$
D
Required information
[The following information applies to the questions displayed below.]
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:
4
Saved
$ 150,000
&
LL
Required:
1. For financial accounting purposes, what is the total amount of product costs incurred
to make 10,000 units? (Do not round intermediate calculations.)
F
5
T
Question 1 -...
G
C
6
Y
G what is the h..
H
Help
D
Save & Exit
Average Cost
per Unit
$7.00
$ 4.50
$ 1.40
$ 4.00
$ 4.00
$ 2.10
$ 1.10
$ 0.55
You
N M
8
-
I
Init 1 - C.
Check my work
K
I
Submit
O
11
ct
?
0
delete
return
shift
Transcribed Image Text:nit 1 Chapter 1 Assignment i 1 t 1 of 15 S Print Period Ccb Home | barti.... 22 my.post.edu... 2 2 W Total product cost S Direct materials. Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Okay 3 E $ D Required information [The following information applies to the questions displayed below.] 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: 4 Saved $ 150,000 & LL Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units? (Do not round intermediate calculations.) F 5 T Question 1 -... G C 6 Y G what is the h.. H Help D Save & Exit Average Cost per Unit $7.00 $ 4.50 $ 1.40 $ 4.00 $ 4.00 $ 2.10 $ 1.10 $ 0.55 You N M 8 - I Init 1 - C. Check my work K I Submit O 11 ct ? 0 delete return shift
Expert Solution
Explanation -

Product Cost -

Product Costs are the cost that includes Administrative and selling Expenses. These expenses are not directly related to the production. These are the indirect cost incurred to maintain the operations.

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