Martinez Company’s relevant range of production is 9,500 units to 14,500 units.

Question

Martinez Company’s relevant range of production is 9,500 units to 14,500 units. When it produces and sells 12,000 units, its unit costs are as follows:

For financial accounting purposes, what is the total amount of product costs incurred to make 12,000 units?

Amount
Per Unit   Direct materials $ 6.20   Direct labor $ 3.70   Variable manufacturing overhead $ 1.60   Fixed manufacturing overhead $ 4.20   Fixed selling expense $ 3.20   Fixed administrative expense $ 2.20   Sales commissions $ 1.20   Variable administrative expense $ 0.45

For financial accounting purposes, what is the total amount of product costs incurred to make 12,000 units?

Explanation / Answer

the total amount of product costs incurred to make 12,000 units=6.20+3.70+1.60+4.20)*12,000=$188,400

remaining all sales and administrative expenses are excluded in production cost.

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.