Dozier Company produced and sold 1,000 units during its first month of operations. It reported the...
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 | $ | 75,000 | ||||
| Direct labor | $ | 38,000 | ||||
| Variable manufacturing overhead | $ | 17,400 | ||||
| Fixed manufacturing overhead | 29,800 | |||||
| Total manufacturing overhead | $ | 47,200 | ||||
| Variable selling expense | $ | 13,200 | ||||
| Fixed selling expense | 20,400 | |||||
| Total selling expense | $ | 33,600 | ||||
| Variable administrative expense | $ | 4,600 | ||||
| Fixed administrative expense | 26,200 | |||||
| Total administrative expense | $ | 30,800 | ||||
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?
Homework Answers
1. With respect to cost classifications for preparing financial statements:
a. What is the total product cost?
| Direct materials | $75000 | |
| Direct labor | 38000 | |
| Variable manufacturing overhead | 17400 | |
| Fixed manufacturing overhead | 29800 | |
| Total manufacturing overhead | 47200 | |
| Total product cost | $160200 |
b. What is the total period cost?
| Variable selling expense | $13200 | |
| Fixed selling expense | 20400 | |
| Total selling expense | 33600 | |
| Variable administrative expense | 4600 | |
| Fixed administrative expense | 26200 | |
| Total administrative expense | 30800 | |
| Total period cost | $64400 |
2. With respect to cost classifications for assigning costs to cost objects:
a. What is total direct manufacturing cost?
| Direct materials | $75000 |
| Direct labor | 38000 |
| Total direct manufacturing cost | $113000 |
b. What is the total indirect manufacturing cost?
| Variable manufacturing overhead | $17400 |
| Fixed manufacturing overhead | 29800 |
| Total indirect manufacturing cost | $47200 |
3. With respect to cost classifications for manufacturers:
a. What is the total manufacturing cost?
| Direct materials | $75000 | |
| Direct labor | 38000 | |
| Variable manufacturing overhead | 17400 | |
| Fixed manufacturing overhead | 29800 | |
| Total manufacturing overhead | 47200 | |
| Total manufacturing cost | $160200 |
b. What is the total non-manufacturing cost?
| Variable selling expense | $13200 | |
| Fixed selling expense | 20400 | |
| Total selling expense | 33600 | |
| Variable administrative expense | 4600 | |
| Fixed administrative expense | 26200 | |
| Total administrative expense | 30800 | |
| Total non-manufacturing cost | $64400 |
c. What is the total conversion cost and prime cost?
Conversion cost= Direct labor+Total manufacturing overhead
= $38000+47200= $85200
Prime cost= Direct materials+Direct labor
= $75000+38000= $113000
4. With respect to cost classifications for predicting cost behavior:
a. What is the total variable manufacturing cost?
| Direct materials | $75000 |
| Direct labor | 38000 |
| Variable manufacturing overhead | 17400 |
| Total variable manufacturing cost | $130400 |
b. What is the total fixed cost for the company as a whole?
| Fixed manufacturing overhead | $29800 |
| Fixed selling expense | 20400 |
| Fixed administrative expense | 26200 |
| Total fixed cost | $76400 |
c. What is the variable cost per unit produced and sold?
| Direct materials | $75000 |
| Direct labor | 38000 |
| Variable manufacturing overhead | 17400 |
| Variable selling expense | 13200 |
| Variable administrative expense | 4600 |
| Total variable cost | $148200 |
Variable cost per unit= Total variable cost/Number of units produced and sold
= $148200/1000= $148.2 per unit
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?
| Direct materials | $75000 |
| Direct labor | 38000 |
| Variable manufacturing overhead | 17400 |
| Total incremental cost | $130400 |
Incremental manufacturing cost for additional unit= Total incremental cost/Number of unit produced and sold
= $130400/1000
= $130.40 per unit
Add Answer to:
Dozier Company produced and sold 1,000 units during its first
month of operations. It reported the...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the...
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 $ 75,000 Direct labor $ 38,000 Variable manufacturing overhead $ 17,400 Fixed manufacturing overhead 29,800 Total manufacturing overhead $ 47,200 Variable selling expense $ 13,200 Fixed selling expense 20,400 Total selling expense $ 33,600 Variable administrative expense $ 4,600 Fixed administrative expense 26,200 Total administrative expense $ 30,800 Required: 1. With respect to cost classifications...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: $ 69,000 $ 35,000 $ 15,000 28,000 $ 43,000 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 $ 12,000 18,000 $ 30,000 $ 4,000 25,000 $ 29,000 3. With respect to cost classifications for...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the...
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Dozier Company produced and sold 1,000 units during its first month of operations. It reported the...
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Dozier Company produced and sold 1,000 units during its first month of operations. It reported the...
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Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: $ 69,000 $ 35,000 $ 15,000 28,000 $ 43,000 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 $ 12,000 18,000 $ 30,000 $ 4,000 25,000 $ 29,000 3. With respect to cost classifications for...
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