Kubin Company's relevant range of production is 10,000 to 12,000 units. When it produces and sells 11,000 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 $ 7.10 $ 4.10 $ 1.60 $ 5.10 $ 3.60 $ 2.60 Exercise 1-8 (Algo) Product Costs and Period Costs; Variable and Fixed Costs [LO1-3, LO1-4] $ 1.10 $ 0.60 Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 11,000 units? 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 11,000 units? 3. For financial accounting purposes, what is the total amount of product costs incurred to make 12,000 units? 4. For financial accounting purposes, what is the total amount of period costs incurred to sell 10,000 units? (For all requirements, do not round intermediate calculations.) 1. Total amount of product cost 2. Total amount of period cost incurred 3. Total amount of product cost 4. Total amount of period cost Answer is complete but not entirely correct. $ 196,900 $ 96,000 $ 214,800 $ 79,000
Kubin Company's relevant range of production is 10,000 to 12,000 units. When it produces and sells 11,000 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 $ 7.10 $ 4.10 $ 1.60 $ 5.10 $ 3.60 $ 2.60 Exercise 1-8 (Algo) Product Costs and Period Costs; Variable and Fixed Costs [LO1-3, LO1-4] $ 1.10 $ 0.60 Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 11,000 units? 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 11,000 units? 3. For financial accounting purposes, what is the total amount of product costs incurred to make 12,000 units? 4. For financial accounting purposes, what is the total amount of period costs incurred to sell 10,000 units? (For all requirements, do not round intermediate calculations.) 1. Total amount of product cost 2. Total amount of period cost incurred 3. Total amount of product cost 4. Total amount of period cost Answer is complete but not entirely correct. $ 196,900 $ 96,000 $ 214,800 $ 79,000
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 5EA: Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost...
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Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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![Kubin Company's relevant range of production is 10,000 to 12,000 units. When it produces and sells 11,000 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
Exercise 1-8 (Algo) Product Costs and Period Costs; Variable and Fixed Costs [LO1-3, LO1-4]
Average
Cost per
Unit
$ 7.10
$ 4.10
$ 1.60
$ 5.10
$ 3.60
$ 2.60
$ 1.10
$0.60
Required:
1. For financial accounting purposes, what is the total amount of product costs incurred to make 11,000 units?
2. For financial accounting purposes, what is the total amount of period costs incurred to sell 11,000 units?
3. For financial accounting purposes, what is the total amount of product costs incurred to make 12,000 units?
4. For financial accounting purposes, what is the total amount of period costs incurred to sell 10,000 units?
(For all requirements, do not round intermediate calculations.)
Answer is complete but not entirely correct.
1. Total amount of product cost
2. Total amount of period cost incurred
3. Total amount of product cost
4. Total amount of period cost
$ 196,900
$ 96,000 X
$
214,800x
$
79,000 X](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F13ac6e16-b8a3-466d-972c-44c9f26b1ec1%2Faccea25d-1c31-4d52-a7c1-cd6f9aa5c53c%2Fiwyfh73_processed.png&w=3840&q=75)
Transcribed Image Text:Kubin Company's relevant range of production is 10,000 to 12,000 units. When it produces and sells 11,000 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
Exercise 1-8 (Algo) Product Costs and Period Costs; Variable and Fixed Costs [LO1-3, LO1-4]
Average
Cost per
Unit
$ 7.10
$ 4.10
$ 1.60
$ 5.10
$ 3.60
$ 2.60
$ 1.10
$0.60
Required:
1. For financial accounting purposes, what is the total amount of product costs incurred to make 11,000 units?
2. For financial accounting purposes, what is the total amount of period costs incurred to sell 11,000 units?
3. For financial accounting purposes, what is the total amount of product costs incurred to make 12,000 units?
4. For financial accounting purposes, what is the total amount of period costs incurred to sell 10,000 units?
(For all requirements, do not round intermediate calculations.)
Answer is complete but not entirely correct.
1. Total amount of product cost
2. Total amount of period cost incurred
3. Total amount of product cost
4. Total amount of period cost
$ 196,900
$ 96,000 X
$
214,800x
$
79,000 X
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Step 1: Introduce to product cost and period cost
VIEWStep 2: Working for fixed costs
VIEWStep 3: Working for variable manufacturing cost per unit
VIEWStep 4: Working for product cost at 11,000 units
VIEWStep 5: Working for period cost at 11,000 units
VIEWStep 6: Working for product cost at 12,000 units
VIEWStep 7: Working for period cost at 10,000 units
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