Question
In: Accounting
Garrett Kelly. Corporation's identified their current production capacity to range from 6,500 units to 22,000 units....
Garrett Kelly. Corporation's identified their current production capacity to range from 6,500 units to 22,000 units. when it produced and sold 12,000 units, its average costs per unit are as follows:
| Average Cost per Unit | |
| Direct Materials | 5.75 |
| Direct Labor | 4.25 |
| Variable manufacturing overhead | 1.75 |
| Fixed Manufacturing Overhead | 4.50 |
| Fixed Selling Expense | 1.75 |
| Fixed Administrative Expense | 0.90 |
| Sales Commissions | 0.75 |
| Variable Administrative Expense | 1.50 |
1) If 15,000 units are produced, the total amount of
Prime Costs incurred is closest to: ______
2) Determine the Conversion Costs for 11,000
units.
3) Determine the Total Product Costs for 12,000
units.
4) Detemine Total Period Costs when 12,000 units
are sold.
Solutions
Expert Solution
| Fixed costs will remain same for unit range of 6500 units to 22000 units, so let us first calculate the fixed costs from the given data of 12000 units | |
| Fixed manufacturing overhead ( 12000 * 4.50 ) | 54000 |
| Fixed selling expense ( 12000 * 1.75 ) | 21000 |
| Fixed administrative expense ( 12000 * 0.90 ) | 10800 |
| Required 1 : | |
| 15000 units | |
| Direct materials ( 15000 * 5.75 ) | 86250 |
| Direct labor ( 15000 * 4.25 ) | 63750 |
| Total prime cost | 150000 |
| Required 2 : | |
| 11000 units | |
| Direct labor ( 11000 * 4.25 ) | 46750 |
| Variable manufacturing overhead ( 11000 * 1.75 ) | 19250 |
| Fixed manufacturing overhead | 54000 |
| Conversion cost | 120000 |
| Required 3 : | |
| 12000 units | |
| Direct materials ( 12000 * 5.75 ) | 69000 |
| Direct labor ( 12000 * 4.25 ) | 51000 |
| Variable manufacturing overhead ( 12000 * 1.75 ) | 21000 |
| Fixed manufacturing overhead | 54000 |
| Total product costs | 195000 |
| Required 4 : | |
| 12000 units | |
| Fixed selling expense | 21000 |
| Fixed administrative expense | 10800 |
| Sales commission ( 12000 * 0.75 ) | 9000 |
| Variable administrative expense ( 12000 * 1.50 ) | 18000 |
| Total period cost | 58800 |
ekkarill92 answered 13 hours agoRelated Solutions
Kubin Company’s relevant range of production is 18,000 to 22,000 units. When it produces and sells...
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:
Average Cost per Unit
Direct materials
$
7.00
Direct labor
$
4.00
Variable manufacturing overhead
$
1.50
Fixed manufacturing overhead
$
5.00
Fixed selling expense
$
3.50
Fixed administrative expense
$
2.50
Sales commissions
$
1.00
Variable administrative expense
$
0.50
Required:
1. Assume the cost object is units of production:
a. What...
Kubin Company’s relevant range of production is 18,000 to 22,000 units. When it produces and sells...
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:
Average Cost per Unit
Direct materials
$
7.00
Direct labor
$
4.00
Variable manufacturing
overhead
$
1.50
Fixed manufacturing
overhead
$
5.00
Fixed selling expense
$
3.50
Fixed administrative
expense
$
2.50
Sales commissions
$
1.00
Variable administrative
expense
$
0.50
Required:
1. For financial accounting purposes, what is the total amount
of...
Kubin Company’s relevant range of production is 18,000 to 22,000 units. When it produces and sells...
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:
Average Cost per Unit
Direct materials
$
7.00
Direct labor
$
4.00
Variable manufacturing
overhead
$
1.50
Fixed manufacturing
overhead
$
5.00
Fixed selling expense
$
3.50
Fixed administrative
expense
$
2.50
Sales commissions
$
1.00
Variable administrative
expense
$
0.50
Required:
1. Assume the cost object is units of production:
a. What...
Kubin Company’s relevant range of production is 18,000 to 22,000 units. When it produces and sells...
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:
Amount per Unit
Direct
materials
$
7.00
Direct
labor
$
4.00
Variable
manufacturing overhead
$
1.50
Fixed
manufacturing overhead
$
5.00
Fixed selling
expense
$
3.50
Fixed
administrative expense
$
2.50
Sales
commissions
$
1.00
Variable
administrative expense
$
0.50
Required:
1. If 18,000 units are produced and sold, what is the variable
cost...
Kubin Company’s relevant range of production is 22,000 to 27,000 units. When it produces and sells...
Kubin Company’s relevant range of production is 22,000 to 27,000
units. When it produces and sells 24,500 units, its average costs
per unit are as follows:
Amount per Unit
Direct materials
$
8.20
Direct labor
$
5.20
Variable manufacturing overhead
$
2.70
Fixed manufacturing overhead
$
6.20
Fixed selling expense
$
4.70
Fixed administrative expense
$
3.70
Sales commissions
$
2.20
Variable administrative expense
$
1.70
Required:
1. What is the incremental manufacturing cost incurred if the
company increases...
Paolucci Corporation's relevant ... Paolucci Corporation's relevant range of activity is 5,700 units to 12,500 units....
Paolucci Corporation's relevant ...
Paolucci Corporation's relevant range of activity is 5,700 units
to 12,500 units. When it produces and sells 9,100 units, its
average costs per unit are as follows:
Average
Cost per Unit
Direct materials
$
6.65
Direct labor
$
3.55
Variable manufacturing overhead
$
1.55
Fixed manufacturing overhead
$
2.50
Fixed selling expense
$
1.50
Fixed administrative expense
$
0.55
Sales commissions
$
1.45
Variable administrative expense
$
0.45
If 8,100 units are sold, the variable cost...
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:
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:Required:1. Assume the cost object is units of production:a. What is the total direct manufacturing cost incurred to make 20,000 units?b. What is the total indirect manufacturing cost incurred to make 20,000 units?2. Assume the cost object is the Manufacturing Department and that its total output is 20,000 units.a. How much total manufacturing cost is...
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:
Refer to the data given in Exercise 1-7. Answer all questions independently.
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:
Required:
1. For financial accounting purposes, what is the total amount of product costs incurred to make 20,000 units?
2. For financial accounting purposes, what is the total amount of period costs incurred to sell 20,000 units?
3. For financial accounting purposes,...
Dake Corporation's relevant range of activity is 2,000 units to 5,000 units. When it produces and...
Dake Corporation's relevant range of activity is 2,000 units to
5,000 units. When it produces and sells 3,500 units, its average
costs per unit are as follows:
Average Cost per Unit
Direct materials
$
6.75
Direct labor
$
3.90
Variable manufacturing overhead
$
1.50
Fixed manufacturing overhead
$
4.00
Fixed selling expense
$
1.10
Fixed administrative expense
$
0.80
Sales commissions
$
0.90
Variable administrative expense
$
0.80
For financial reporting purposes, the total amount of product
costs incurred to...
Kurt Corporation's relevant range of activity is 4,900 units to 5,500 units. When it produces and...
Kurt Corporation's relevant range of activity is 4,900 units to
5,500 units. When it produces and sells 5,200 units, its average
costs per unit are as follows:
Average Cost per Unit
Direct materials
$
6.50
Direct labor
$
3.70
Variable manufacturing overhead
$
2.10
Fixed manufacturing overhead
$
3.00
Fixed selling expense
$
1.00
Fixed administrative expense
$
0.70
Sales commissions
$
0.80
Variable administrative expense
$
0.70
If 4,200 units are produced, the total amount of indirect
manufacturing cost...
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