Kubin Companys relevant range of production is 28000 to 3150

Kubin Company\'s relevant range of production is 28,000 to 31,500 units. When it produces and sells 29,750 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Pixed manufacturing overhead Pixed selling expense Pixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit 8.80 5.80 S3.30 6.80 s5.30 s4.30 $2.80 2.30 Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 29,750 units? 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 29,750 units? 3. For financial accounting purposes, what is the total amount of product costs incurred to make 31,50O units? 4. For financial accounting purposes, what is the total amount of period costs incurred to sell 28,000 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

Solution

(Product cost = Direct materials + Direct labor + Manufacturing Overhead) Direct materials per unit 8.80 x 29,750 units $     261,800 Direct labor per unit 5.8 x 29,750 units $     172,550 Variable manufacturing overhead per unit 3.3 x 29,750 units $        98,175 Fixed manufacturing overhead per unit 6.80 x 29,750 units $     202,300 Total Product Cost $     734,825 For 29750 units (Period costs = selling expenses + administrative expenses) Fixed selling expense per unit 5.30 x 29,750 units $     157,675 Fixed administrative expense per unit 4.30 x 29,750 units $     127,925 Sales commissions per unit 2.80 x 29,750 units $        83,300 Variable administrative expense per unit 2.30 x 29,750 units $        68,425 Total period cost $     437,325 For 29750 units Direct materials per unit 8.80 x 31,500 units $     277,200 Direct labor per unit 5.8 x 31,500 units $     182,700 Variable manufacturing overhead per unit 3.3 x 31,500 units $     103,950 Fixed manufacturing overhead per unit 202300 x 31,500/31500 units $     202,300 Total Product Cost $     766,150 For 31500 units Fixed selling expense per unit 157675*28000/28000 $     157,675 Fixed administrative expense per unit 127925*28000/28000 $     127,925 Sales commissions per unit 2.80 x 28,000 units $        78,400 Variable administrative expense per unit 2.30 x 28,000 units $        64,400 Total period cost $     428,400 For 28000 units