Question

Chapter 1 Pre-Quiz 2 Part 2 of 15 (The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows points Average Cost Unit $5.30 Print Direct materials Direct labor $1.40 $4.00 $2.30 $2.20 $1.20 $0.45 Fixed manufacturing overhead Fixed selling expense Pixed administrative Sales commissions expense 2. For financial accounting purposes, what is the total amount of period costs incurred to sell10,000 units? (Do not round intermediate calculations.) Next > < Prev 2 3 15 16,331 02

Answer 1

Product costs are which are used in making the product the costs are nessasery to finish the product periodic costs are which are mostly with selling function or its general administration they are not necessarily used for production

In the given question period costs are

Fixed selling expense 2.3

Fixed administration expense 2.2

Sales commission 1.2

Variable administration expense 0.45

Total period costs per unit 6.15

10000 units are produced so for financial accounting purpose cost is 6.15* 10000=61500