Kubin Companys relevant range of production is 13000 to 1800

Kubin Company\'s relevant range of production is 13,000 to 18,000 units. When it produces and sells 15,500 units, its average costs per unit are as follows: Cost per Unit $ 7.40 s 4.40 s 1.90 5.40 Direct labor Variable manufacturing overhead Fixed nanufacturing overhead 3.90 Fixed s 2.90 s 1.40 e.90 1. For financial accounting purposes, what is the total amount of product costs incurred to make 15,500 units? 2. For financial accounting purposes, what is the total amount of perlod costs incurred to sell 15,500 units? 3. For financial 4. For financial accounting purposes, what is the total amount of period costs incurred to sell 13,000 units? accounting purposes, what is the total amount of product costs incurred to make 18.000 units? (For all requirements, do not round intermediate calculations.)

Solution

Part 1)

The total amount of product costs incurred to make 15,500 units is determined as below:

Total Amount of Product Costs = Units*(Direct Material Per Unit + Direct Labor Per Unit + Variable Manufacturing Overhead + Fixed Manufacturing Overhead Per Unit)

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Using the values provided in the question, we get,

Total Amount of Product Costs to Make 15,500 Units = 15,500*(7.40 + 4.40 + 1.90 + 5.40) = $296,050

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Part 2)

The total amount of period costs to sell 15,500 units is calculated as follow:

Total Amount of Period Costs = Units*(Fixed Selling Expense Per Unit + Fixed Administrative Expense Per Unit + Sales Commissions Per Unit + Variable Administrative Expense Per Unit)

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Using the values provided in the question, we get,

Total Amount of Period Costs to Sell 15,500 Units = 15,500*(3.90 + 2.90 + 1.40 + .90) = $141,050

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Part 3)

The total amount of product costs incurred to make 18,000 units is determined with the use of following table:

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Part 4)

The value of total period costs to sell 13,000 units is calculated as follows:

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Tabular Representation of All Parts:

Direct Material (18,000*7.40)	133,200
Direct Labor (18,000*4.40)	79,200
Variable Manufacturing Overhead (18,000*1.90)	34,200
Fixed Manufacturing Overhead (15,500*5.40)	83,700
Total Product Costs to Make 18,000 Units	$330,300