Question

Kubin Company’s relevant range of production is 10,000 to 12,000 units. When it produces and sells 11,000 units, its average costs per unit are as follows:

Average Cost per Unit

Direct materials $7.10

Direct labor$4.10

Variable manufacturing overhead$1.60

Fixed manufacturing overhead$5.10

Fixed selling expense$3.60

Fixed administrative expense$2.60

Sales commissions$1.10

Variable administrative expense$0.60

Required:

1. For financial accounting purposes, what is the total amount of product costs incurred to make 11,000 units?

2. For financial accounting purposes, what is the total amount of period costs incurred to sell 11,000 units?

3. For financial accounting purposes, what is the total amount of product costs incurred to make 12,000 units?

4. For financial accounting purposes, what is the total amount of period costs incurred to sell 10,000 units?

(For all requirements, do not round intermediate calculations.)

---

Answer 1

1
Direct materials	78100	=11000*7.1
Direct labor	45100	=11000*4.1
Variable manufacturing overhead	17600	=11000*1.6
Fixed manufacturing overhead	56100	=11000*5.1
Total product costs incurred to make 11,000 units	196900
2
Fixed selling expense	39600	=11000*3.6
Fixed administrative expense	28600	=11000*2.6
Sales commissions	12100	=11000*1.1
Variable administrative expense	6600	=11000*0.6
Total period costs incurred to sell 11,000 units	86900
3
Direct materials	85200	=12000*7.1
Direct labor	49200	=12000*4.1
Variable manufacturing overhead	19200	=12000*1.6
Fixed manufacturing overhead	56100	=11000*5.1
Total product costs incurred to make 12,000 units	209700
4
Fixed selling expense	39600	=11000*3.6
Fixed administrative expense	28600	=11000*2.6
Sales commissions	11000	=10000*1.1
Variable administrative expense	6000	=10000*0.6
Total period costs incurred to sell 10,000 units	85200