Question

Required information Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 27,500 units? 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 27,500 units? 3. For financial accounting purposes, what is the total amount of product costs incurred to make 31,000 units? 4. For financial accounting purposes, what is the total amount of period costs incurred to sell 24,000 units? (For all requirements, do not round intermediate calculations.) 1. Total amount of product costs 2. Total amount of period costs incurred 3. Total amount of product costs 4. Total amount of period costs

variable

Answer 1

1)
Particulars	Amount (in $ )
Direct materials ( $ 27,500 units x $ 8.40 )	$ 231,000
Direct labor ( $ 27,500 units x $ 5.40 )	$ 148,500
Variable manufacturing overhead ( $ 27,500 units x $ 2.90 )	$ 79,750
Fixed manufacturing overhead ( $ 27,500 units x $ 6.40 )	$ 176,000
Total Amount of Product Cost	$ 635,250
2)
Particulars	Amount (in $ )
Fixed selling expense ( $ 27,500 units x $ 4.90 )	$ 134,750
Fixed administrative expense ( $ 27,500 units x $ 3.90 )	$ 107,250
Sales commissions ( $ 27,500 units x $ 2.40 )	$ 66,000
Variable administrative expense ( $ 27,500 units x $ 1.90 )	$ 52,250
Total Amount of Period Costs incurred	$ 360,250
3)
Particulars	Amount (in $ )
Direct materials ( $ 31,000 units x $ 8.40 )	$ 260,400
Direct labor ( $ 31,000 units x $ 5.40 )	$ 167,400
Variable manufacturing overhead ( $ 31,000 units x $ 2.90 )	$ 89,900
Fixed manufacturing overhead ( $ 27,500 units x $ 6.40 )	$ 176,000
Total Amount of Product Cost	$ 693,700
4)
Particulars	Amount (in $ )
Fixed selling expense ( $ 27,500 units x $ 4.90 )	$ 134,750
Fixed administrative expense ( $ 27,500 units x $ 3.90 )	$ 107,250
Sales commissions ( $ 24,000 units x $ 2.40 )	$ 57,600
Variable administrative expense ( $ 24,000 units x $ 1.90 )	$ 45,600
Total Amount of Period Costs	$ 345,200