The relevant Kubin Company production range is 26,000 to 35,500 units. When you produce and sell 30,750 units, your average costs per unit are as follows:

	average cost per unit
Direct materials	ps	8.60
Direct labour	ps	5.60
Variable manufacturing overhead	ps	3.10
Fixed manufacturing costs	ps	6.60
fixed sales expense	ps	5.10
Fixed administrative expense	ps	4.10
Sales commissions	ps	2.60
Variable administrative expenses	ps	2.10

Required:

1. For financial accounting purposes, what is the total amount of product costs incurred to manufacture 30,750 units?

2. For financial accounting purposes, what is the total amount of period costs incurred to sell 30,750 units?

3. For financial accounting purposes, what is the total amount of product costs incurred to manufacture 35,500 units?

4. For financial accounting purposes, what is the total amount of period costs incurred to sell 26,000 units?

Answer rating: 100% (QA)

Lets calculate the total amount of product costs and period costs Calculate the product costs Direct ... View the full answer