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Lagle Corporation has provided the following information: Cost per Unit Cost per Period Direct materials$5.20 Direct labor$3.80 Variable manufacturing overhead$1.35 Fixed manufacturing overhead $7,600 Sales commissions$1.70 Variable administrative expense$0.30 Fixed selling and administrative expense $5,000 For financial reporting purposes, the total amount of period costs incurred to sell 4,000 units is closest to:

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Answer:

$49,000

Explanation:

Calculation for the total amount of period costs incurred to sell 4,000 units is closest to

First step is to calculate

Variable manufacturing cost per unit

Direct materials $5.20

Direct labor $3.80

Variable manufacturing overhead

$1.35

Variable manufacturing cost per unit $10.35

Now let calculate the total amount of period costs

Total variable manufacturing cost $41,400

($10.35 per unit x 4,000 units produced)

Add Total fixed manufacturing overhead cost $7,600

Total product (manufacturing) cost $49,000

($41,400+$7,600)

Therefore the total amount of period costs incurred to sell 4,000 units is closest to is $49,000

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