Required information Skip to question [The following information applies to the questions displayed below.] Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 5.90 Direct labor $ 3.40 Variable manufacturing overhead $ 1.60 Fixed manufacturing overhead $ 4.00 Fixed selling expense $ 2.90 Fixed administrative expense $ 2.20 Sales commissions $ 1.20 Variable administrative expense $ 0.45 Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units? (Do not round intermediate calculations.)

Product cost means the total costs incurred to create a product including direct labor, direct materials, consumable production supplies, factory overhead etc

What is total amount of product costs incurred to make 10,000 units?

Product cost = Direct materials + direct labor + manufacturing overhead

Product cost = $6 + $3.50 + $1.50 + $4.00

Product cost = $15 per unit

For the 10,000 units = 10,000 units * 15

For the 10,000 units = $150,000.

In conclusion, the total amount of product costs incurred to make 10,000 unit is $150,000.