Required information. Cost Classifications (Static) [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Average Cost per Unit $ 7.00 $ 4.00 $ 1.50 $ 5.00 $ 3.50 Fixed administrative expense $ 2.50 $ 1.00 Variable administrative expense $ 0.50 Sales commissions Exercise 1-8 (Static) Product Costs and Period Costs; Variable and Fixed Costs [LO1-3, LO1-4] Required: 1. For financial accounting purposes, what is the total product cost incurred to make 20,000 units? 2. For financial accounting purposes, what is the total period cost incurred to sell 20,000 units? 3. For financial accounting purposes, what is the total product cost incurred to make 22,000 units? 4. For financial accounting purposes, what is the total period cost incurred to sell 18,000 units? Note: For all requirements, do not round intermediate calculations. 1. Total product cost 2. Total period cost 3. Total product cost 4. Total period cost
Required information. Cost Classifications (Static) [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Average Cost per Unit $ 7.00 $ 4.00 $ 1.50 $ 5.00 $ 3.50 Fixed administrative expense $ 2.50 $ 1.00 Variable administrative expense $ 0.50 Sales commissions Exercise 1-8 (Static) Product Costs and Period Costs; Variable and Fixed Costs [LO1-3, LO1-4] Required: 1. For financial accounting purposes, what is the total product cost incurred to make 20,000 units? 2. For financial accounting purposes, what is the total period cost incurred to sell 20,000 units? 3. For financial accounting purposes, what is the total product cost incurred to make 22,000 units? 4. For financial accounting purposes, what is the total period cost incurred to sell 18,000 units? Note: For all requirements, do not round intermediate calculations. 1. Total product cost 2. Total period cost 3. Total product cost 4. Total period cost
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
Related questions
Question
![Required information.
Cost Classifications (Static)
[The following information applies to the questions displayed below.]
Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its
average costs per unit are as follows:
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Average
Cost per
Unit
$ 7.00
$ 4.00
$
1.50
$ 5.00
$ 3.50
Fixed administrative expense
$ 2.50
$ 1.00
Variable administrative expense
$ 0.50
Sales commissions
Exercise 1-8 (Static) Product Costs and Period Costs; Variable and Fixed Costs [LO1-3, LO1-4]
Required:
1. For financial accounting purposes, what is the total product cost incurred to make 20,000 units?
2. For financial accounting purposes, what is the total period cost incurred to sell 20,000 units?
3. For financial accounting purposes, what is the total product cost incurred to make 22,000 units?
4. For financial accounting purposes, what is the total period cost incurred to sell 18,000 units?
Note: For all requirements, do not round intermediate calculations.
1. Total product cost
2. Total period cost
3. Total product cost
4. Total period cost](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5fce8b2e-6cad-4f71-929c-b2e0a063895d%2F09d0808e-2b88-4431-bb0b-af27cf9c417a%2F0jmkbn9_processed.png&w=3840&q=75)
Transcribed Image Text:Required information.
Cost Classifications (Static)
[The following information applies to the questions displayed below.]
Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its
average costs per unit are as follows:
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Average
Cost per
Unit
$ 7.00
$ 4.00
$
1.50
$ 5.00
$ 3.50
Fixed administrative expense
$ 2.50
$ 1.00
Variable administrative expense
$ 0.50
Sales commissions
Exercise 1-8 (Static) Product Costs and Period Costs; Variable and Fixed Costs [LO1-3, LO1-4]
Required:
1. For financial accounting purposes, what is the total product cost incurred to make 20,000 units?
2. For financial accounting purposes, what is the total period cost incurred to sell 20,000 units?
3. For financial accounting purposes, what is the total product cost incurred to make 22,000 units?
4. For financial accounting purposes, what is the total period cost incurred to sell 18,000 units?
Note: For all requirements, do not round intermediate calculations.
1. Total product cost
2. Total period cost
3. Total product cost
4. Total period cost
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