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Question - Kubin Company's relevant range of production is 16,000 to 24,500 units. When it produces and sells 20,250 units, its average costs per unit are as follows:
Average Cost per Unit
Direct materials
$7.70
Direct labor
$4.70
Variable manufacturing overhead
$2.20
Fixed manufacturing overhead
$5.70
Fixed selling expense
$4.20
Fixed administrative expense
$3.20
Sales commissions
$1.70
Variable administrative expense
$1.20
Required -
1. For financial accounting purposes, what is the total amount of product costs Incurred to make 20,250 units?
2. For financial accounting purposes, what is the total amount of perlod costs Incurred to sell 20,250 units?
3. For financial accounting purposes, what is the total amount of product costs Incurred to make 24,500 units?
4. For financial accounting purposes, what is the total amount of period costs Incurred to sell 16,000 units?
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