[The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 20,000 to 23,000 units. When it produces and sells 21,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 8.00 Direct labor $ 5.00 Variable manufacturing overhead $ 2.50 Fixed manufacturing overhead $ 6.00 Fixed selling expense $ 4.50 Fixed administrative expense $ 3.50 Sales commissions $ 2.00 Variable administrative expense $ 1.50 Exercise 1-8 (Algo) 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 21,500 units? 2. For financial accounting purposes, what is the total period cost incurred to sell 21,500 units? 3. For financial accounting purposes, what is the total product cost incurred to make 23,000 units? 4. For financial accounting purposes, what is the total period cost incurred to sell 20,000 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
[The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 20,000 to 23,000 units. When it produces and sells 21,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 8.00 Direct labor $ 5.00 Variable manufacturing overhead $ 2.50 Fixed manufacturing overhead $ 6.00 Fixed selling expense $ 4.50 Fixed administrative expense $ 3.50 Sales commissions $ 2.00 Variable administrative expense $ 1.50 Exercise 1-8 (Algo) 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 21,500 units? 2. For financial accounting purposes, what is the total period cost incurred to sell 21,500 units? 3. For financial accounting purposes, what is the total product cost incurred to make 23,000 units? 4. For financial accounting purposes, what is the total period cost incurred to sell 20,000 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
rm.3
![[The following information applies to the questions displayed below.]
Kubin Company's relevant range of production is 20,000 to 23,000 units. When it produces and sells 21,500 units, its
average costs per unit are as follows:
Average
Cost per
Unit
Direct materials
$ 8.00
Direct labor
$ 5.00
Variable manufacturing overhead
$ 2.50
Fixed manufacturing overhead
$ 6.00
Fixed selling expense
$ 4.50
Fixed administrative expense
$ 3.50
Sales commissions
$ 2.00
Variable administrative expense
$ 1.50
Exercise 1-8 (Algo) 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 21,500 units?
2. For financial accounting purposes, what is the total period cost incurred to sell 21,500 units?
3. For financial accounting purposes, what is the total product cost incurred to make 23,000 units?
4. For financial accounting purposes, what is the total period cost incurred to sell 20,000 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%2Ffab6de97-4a1c-4ce8-92b5-d4fd3f727208%2F797be67b-d29d-4d2b-8b8f-35a097194f16%2F2idf67_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[The following information applies to the questions displayed below.]
Kubin Company's relevant range of production is 20,000 to 23,000 units. When it produces and sells 21,500 units, its
average costs per unit are as follows:
Average
Cost per
Unit
Direct materials
$ 8.00
Direct labor
$ 5.00
Variable manufacturing overhead
$ 2.50
Fixed manufacturing overhead
$ 6.00
Fixed selling expense
$ 4.50
Fixed administrative expense
$ 3.50
Sales commissions
$ 2.00
Variable administrative expense
$ 1.50
Exercise 1-8 (Algo) 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 21,500 units?
2. For financial accounting purposes, what is the total period cost incurred to sell 21,500 units?
3. For financial accounting purposes, what is the total product cost incurred to make 23,000 units?
4. For financial accounting purposes, what is the total period cost incurred to sell 20,000 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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