Dozier Company produced and sold 1,000 units during its first month of operation

Question

Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Variable selling expense Fixed selling expense Total selling expense Variable administrative expense Fixed administrative expense Total administrative expense $ 70,000 $ 35, 500 $ 15,400 $43,700 12,200 18,400 $ 30,600 $ 4,100 $ 29,300 Required 1. With respect to cost classifications for preparing financial statements: a. What is the total product cost? b. What is the total period cost? 2. With respect to cost classifications for assigning costs to cost objects: a. What is total direct manufacturing cost? b. What is the total indirect manufacturing cost? 3. With respect to cost classifications for manufacturers: a. What is the total manufacturing cost? b. What is the total nonmanufacturing cost? C. What is the total conversion cost and prime cost? 4. With respect to cost classifications for predicting cost behavior: a. What is the total variable manufacturing cost? b. What is the total fixed cost for the company as a whole? C. What is the variable cost per unit produced and sold? 5. With respect to cost classifications for decision making: a. If Dozier had produced 1,001 units instead of 1,000 units, how much incremental manufacturing cost would it have incurred to make the additional unit? Complete this question by entering your answers in the tabs below. Required 1Required 2Required 3 Required 4 Required 5 1. With respect to cost classifications for preparing financial statements: a. What is the total product cost? b. What is the total period cost? 1a. Total product cost 1b. Total period cost

Explanation / Answer

1 (a) Total Product cost: Direct material = $     70,000 Direct labor = $     35,500 Variable manufaturing overheads = $     15,400 Fixed manufaturing overheads = $     28,300 Total Product cost = $ 1,49,200 (b) Total Period cost: Variable selling expenses = $     12,200 Fixed selling expenses = $     18,400 Variable administrative expenses = $       4,100 Fixed administrative expenses = $     25,200 Total Period cost = $     59,900 2 (a) Total Direct manufacturing costs: Direct material = $     70,000 Direct labor = $     35,500 Total Direct manufacturing costs = $ 1,05,500 (b) Total Indirect manufacturing costs: Variable manufacturing overheads = $     15,400 Fixed manufacturing overheads = $     28,300 Total Indirect manufacturing costs = $     43,700 3 (a) Total Manufacturing costs: Total Direct manufacturing costs = $ 1,05,500 Total Indirect manufacturing costs = $     43,700 Total Manufacturing costs = $ 1,49,200 (b) Total Non - manufacturing costs: Variable selling expenses = $     12,200 Fixed selling expenses = $     18,400 Variable administrative expenses = $       4,100 Fixed administrative expenses = $     25,200 Total Non - manufacturing costs = $     59,900 (c) Total Conversion cost: Direct labor = $     35,500 Variable manufacturing overheads = $     15,400 Fixed manufacturing overheads = $     28,300 Total Conversion cost = $     79,200 Prime cost: Direct material = $     70,000 Direct labor = $     35,500 Prime cost = $ 1,05,500 4 (a) Total Variable manufacturing cost: Direct material = $     70,000 Direct labor = $     35,500 Variable manufaturing overheads = $     15,400 Total Variable manufacturing cost = $ 1,20,900 (b) Total Fixed cost for the company as a whole: Fixed manufacturing overheads = $     28,300 Fixed selling expenses = $     18,400 Fixed administrative expenses = $     25,200 Total Fixed cost for the company as a whole = $     71,900 (c) Variable cost per unit produced and sold: Direct material = $     70,000 Direct labor = $     35,500 Variable manufaturing overheads = $     15,400 Variable selling expenses = $     12,200 Variable administrative expenses = $       4,100 (i) Total Variable cost for the company as a whole = $ 1,37,200 (ii) Number of units produced =           1,000 (i) / (ii) Variable cost per unit produced and sold = $     137.20 5 (a) Incremental cost per unit produced: (i) Total Variable manufacturing cost = $ 1,20,900 (ii) Number of units produced =           1,000 (i) / (ii) Incremental cost per unit produced = $     120.90

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