Question
In: Accounting
Kubin Company’s relevant range of production is 29,000 to 33,000 units. When it produces and sells...
Kubin Company’s relevant range of production is 29,000 to 33,000 units. When it produces and sells 31,000 units, its average costs per unit are as follows:
| Average Cost per Unit | ||
| Direct materials | $ | 8.90 |
| Direct labor | $ | 5.90 |
| Variable manufacturing overhead | $ | 3.40 |
| Fixed manufacturing overhead | $ | 6.90 |
| Fixed selling expense | $ | 5.40 |
| Fixed administrative expense | $ | 4.40 |
| Sales commissions | $ | 2.90 |
| Variable administrative expense | $ | 2.40 |
Required:
1. For financial accounting purposes, what is the total amount of product costs incurred to make 31,000 units?
2. For financial accounting purposes, what is the total amount of period costs incurred to sell 31,000 units?
3. For financial accounting purposes, what is the total amount of product costs incurred to make 33,000 units?
4. For financial accounting purposes, what is the total amount of period costs incurred to sell 29,000 units?
Solutions
Expert Solution
| Req 1. | ||||
| Total Product cost of 31000 units: | ||||
| Material | (31000*8.90) | 275900 | ||
| Labour | (31000*5.90) | 182900 | ||
| variable manufacturing OH | (31000*3.40) | 105400 | ||
| Fixed manufacturing Oh | (31000*6.90) | 213900 | ||
| Total Product cost of 31000 units: | 778100 | |||
| Req 2. | ||||
| Total Period cost of 31000 uits: | ||||
| Fixed selling expnse (31000*5.40) | 167400 | |||
| Fixed Admin expense (31000*4.40) | 136400 | |||
| Sales commission (31000*2.90) | 89900 | |||
| Variable Admin (31000*2.40) | 74400 | |||
| Total Period cost of 31000 units: | 468100 | |||
| Req 3. | ||||
| Total Product cost of 33000 units: | ||||
| Material | (33000*8.90) | 293700 | ||
| Labour | (33000*5.90) | 194700 | ||
| variable manufacturing OH | (33000*3.40) | 112200 | ||
| Fixed manufacturing Oh | (31000*6.90) | 213900 | ||
| Total Product cost of 33000 units: | 814500 | |||
| Req 4. | ||||
| Total Period cost of 29000 uits: | ||||
| Fixed selling expnse (31000*5.40) | 167400 | |||
| Fixed Admin expense (31000*4.40) | 136400 | |||
| Sales commission (29000*2.90) | 84100 | |||
| Variable Admin (29000*2.40) | 69600 | |||
| Total Period cost of 29000 units: | 457500 | |||
ekkarill92 answered 1 year agoRelated Solutions
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Kubin Company’s relevant range of production is 27,000 to 29,000 units. When it produces and sells...
Kubin Company’s relevant range of production is 27,000 to 29,000
units. When it produces and sells 28,000 units, its average costs
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Direct materials
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Fixed manufacturing
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Fixed selling expense
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Fixed administrative
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Sales commissions
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per unit are as follows:
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Direct labor
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Fixed manufacturing overhead
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Fixed administrative expense
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