1. Lettman Corporation has provided the following partial listing of costs incurred during
a. What is the total amount of product cost listed above? Show your work.
b. What is the total amount of period cost listed above? Show your work.
a. Product costs consist of direct materials, direct labor, and manufacturing overhead:
b. Period costs consist of all costs other than product costs:
2. Corio Corporation reports that at an activity level of 3,800 units, its total variable cost is
$221,464 and its total fixed cost is $94,848.
For the activity level of 3,900 units, compute: (a) the total variable cost; (b) the total fixed cost;
(c) the total cost; (d) the average variable cost per unit; (e) the average fixed cost per unit; and (f)
the average total cost per unit. Assume that this activity level is within the relevant range.
3. Honey Corporation, a merchandising company, reported the following results for January:
Cost of goods sold is a variable cost in this company.
a. Prepare a traditional format income statement for January.
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