Asplund Corporation has provided the following information:??Cost per UnitCost per Period?Direct materials$6.25??Direct labor$2.90??Variable manufacturing overhead$1.30??Fixed manufacturing overhead?$18,000?Sales commissions$1.50??Variable administrative expense$0.45??Fixed selling and administrative expense?$7,500Required:a. For financial reporting purposes, what is the total amount of product costs incurred to make 5,000 units?b. For financial reporting purposes, what is the total amount of period costs incurred to sell 5,000 units?
What will be an ideal response?
a.
| ? | Direct materials | $6.25 |
| ? | Direct labor | 2.90 |
| ? | Variable manufacturing overhead | 1.30 |
| ? | Variable manufacturing cost per unit | $10.45 |
| ? | ? | ? |
| ? | Total variable manufacturing cost ($10.45 per unit × 5,000 units produced) | $52,250 |
| ? | Total fixed manufacturing overhead cost | 18,000 |
| ? | Total product (manufacturing) cost | $70,250 |
b.
| ? | Sales commissions | $1.50 |
| ? | Variable administrative expense | 0.45 |
| ? | Variable selling and administrative expense per unit | $1.95 |
| ? | ? | ? |
| ? | Total variable selling and administrative expense ($1.95 per unit × 5,000 units sold) | $9,750 |
| ? | Total fixed selling and administrative expense | 7,500 |
| ? | Total period (nonmanufacturing) cost | $17,250 |
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