Question

Che 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: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit 8.90 $5.90 $ 3.40 $ 6.90 $ 5.40 4.40 $ 2.90 $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? (For all requirements, do not round intermediate calculations.)

Answer 1

1
Direct materials	275900	=31000*8.9
Direct labor	182900	=31000*5.9
Variable manufacturing overhead	105400	=31000*3.4
Fixed manufacturing overhead	213900	=31000*6.9
Total amount of product costs	778100
2
Fixed selling expense	167400	=31000*5.4
Fixed administrative expense	136400	=31000*4.4
Sales Commissions	89900	=31000*2.9
Variable administrative expense	74400	=31000*2.4
Total amount of period costs incurred	468100
3
Direct materials	293700	=33000*8.9
Direct labor	194700	=33000*5.9
Variable manufacturing overhead	112200	=33000*3.4
Fixed manufacturing overhead	213900	=31000*6.9
Total amount of product costs	814500
4
Fixed selling expense	167400	=31000*5.4
Fixed administrative expense	136400	=31000*4.4
Sales Commissions	84100	=29000*2.9
Variable administrative expense	69600	=29000*2.4
Total amount of period costs	457500