Question

12 Required information [The following information applies to the questions displayed below.) 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: ok Direct materials Direct labor Variable manufacturing overhead Yixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cont per Unit $ 7.00 $ 4.00 $ 1.50 $ 5.00 $ 3.50 $ 2.50 $ 1.00 $ 0.50 rences 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, what is the total amount of product costs incurred to make 22,000 units? 4. For financial accounting purposes, what is the total amount of period costs incurred to sell 18,000 units? 1. 2. 3 Total amount of product costs Total amount of period costs incurred Total amount of product costs Total amount of period costs

Answer 1

Solution:

1.	Total amount of product costs	350,000
2.	Total amount of period costs incurred	150,000
3.	Total amount of product costs	375,000
4.	Total amount of period costs	147,000

Explanation:

Variable manufacturing cost per unit	12.5
Number of units produced	20,000
Total variable manufacuring costs		250000
Average fixed manufacturing overhead per unit	5
Number of units produced	20,000	100000
Total product cost		350000

Variable selling and administration per unit	1.5
Number of units sold	20,000
Total variable selling and administration expenses		30000
Average fixed selling and administration expenses per unit	6
Number of units sold	20,000	120000
Total period cost		150000

Variable manufacturing cost per unit	12.5
Number of units produced	22,000
Totla variable manufacturing cost		275000
Total fixed manufacturing cost		100000
Total product cost		375000

Variable selling and aminstration expenses per unit	1.5
Number of units sold	18,000
Total variable selling and administration expense		27000
Total fixed selling and administration expenses		120000
Total period cost		147000

_ Copy of HomeworkLib2 - Microsoft Excel (Product Activation Failed) X File Home Insert Page Layout Formulas Data Review View X to Cut AutoSum Calibri 11 A A z Wrap Text General Normal Bad Good Да Copy * Fill Paste B 1 U- a Merge & Center Calculation Conditional Format as Neutral Formatting Table Check Cell Insert Delete Format Format Painter 2 Clear Sort & Find & Filter - Select Editing Clipboard Font Alignment Number Styles Cells K88 fac A B С D E F G H I j K L M N 0 P 0 77 Average cost per unit 12.5 7 20,000 4 250000 1.5 1 Variable manufacturing cost per unit Number of units produced Total variable manufacuring costs Average fixed manufacturing overhead per unit Number of units produced Total product cost 5 5 78 79 80 81 82 83 84 85 86 87 20,000 Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commission Variable administrative expense 100000 350000 3.5 2.5 1 1.5 20,000 0.5 30000 2 Variable selling and administration per unit Number of units sold Total variable selling and administration expenses Average fixed selling and administration expenses per unit Number of units sold Total period cost 6 20,000 120000 150000 12.5 22,000 3 Variable manufacturing cost per unit Number of units produced Totla variable manufacturing cost Total fixed manufacturing cost Total product cost 275000 100000 375000 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 1.5 18,000 4 Variable selling and aminstration expenses per unit Number of units sold Total variable selling and administration expense Total fixed selling and administration expenses Total period cost 27000 120000 147000 Sheet155 Sheet156 Sheet157 Sheet158 Sheet159 Sheet160 Sheet161 Sheet162 Sheet163 Sheet164 Sheet165 Ready OH 100% 1 1 Type here to search O חד 30% O » ENG 04:58 19-09-2020 1

_ Copy of HomeworkLib2 - Microsoft Excel (Product Activation Failed) X File Home Insert Page Layout Formulas Data Review View X % Cut AutoSum Calibri 11 A A z Wrap Text General Normal Bad Good La Copy Fill Paste в І U- - Merge & Center GP, % Calculation Conditional Format as Neutral Formatting Table Check Cell Insert Delete Format Format Painter 2 Clear Sort & Find & Filter - Select Editing Clipboard Font Alignment Number Styles Cells 185 fac A B С D E F G H 1 J 77 Average cost per unit 1 =C79+C80+C81 20000 =G79*678 =C82 Variable manufacturing cost per unit Number of units produced Total variable manufacuring costs Average fixed manufacturing overhead per unit Number of units produced Total product cost 20000 78 79 80 81 82 83 84 85 86 87 =G82*681 Direct materials 7 Direct labour 4 Variable manufacturing overhead 1.5 Fixed manufacturing overhead 5 Fixed selling expense 3.5 Fixed administrative expense 2.5 Sales commission 1 Variable administrative expense 0.5 =H82+H80 2 =C85+C86 20000 =G86*685 Variable selling and administration per unit Number of units sold Total variable selling and administration expenses Average fixed selling and administration expenses per unit Number of units sold Total period cost =C83+C84 20000 =G88*689 =H89+H87 3 =C79+C80+C81 22000 Variable manufacturing cost per unit Number of units produced Totla variable manufacturing cost Total fixed manufacturing cost Total product cost =G93*G92 =H82 =H95+H94 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 KO 4 =C85+C86 18000 Variable selling and aminstration expenses per unit Number of units sold Total variable selling and administration expense Total fixed selling and administration expenses Total period cost =G99*698 =H89 =H101+H100 Sheet155 Sheet156 Sheet157 Sheet158 Sheet159 Sheet160 Sheet161 Sheet162 Sheet163 Sheet164 Sheet165 Ready OM 100% 1 Type here to search O חד 34% O » ENG 05:02 19-09-2020 1